Investing.com - Copper prices tumbled to a two-week low on Wednesday, tracking steep losses across the metals complex, as ongoing expectations of higher interest rates in the U.S. weighed.
Copper for September delivery on the Comex division of the New York Mercantile Exchange hit an intraday low of $2.427 a pound, a level not seen since July 8, before trading at $2.433 during European morning hours, down 4.1 cents, or 1.68%. A day earlier, copper lost 0.7 cents, or 0.28%, to close at $2.474.
Concerns over the health of China's economy and a subsequent slowdown in demand also contributed to losses. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere, gold futures for August delivery slumped $10.60, or 0.96%, to trade at $1,092.90 a troy ounce, while silver futures for September delivery declined 11.7 cents, or 0.79% to trade at $14.66 an ounce.
Prices of the precious metal have been under heavy selling pressure in recent weeks amid speculation the Federal Reserve will raise interest rates for the first time in nine years as early as September.
Gold, which yields nothing and costs money to hold, is seen as a less attractive investment during times of rising interest rates.
The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 97.39, not far from Tuesday's three-month high of 98.30.
The greenback remained in demand amid rising bets that a rate hike is coming in September.
A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies.
Meanwhile, the Greek parliament was set to vote later Wednesday on a second set of reforms needed to secure the country's bailout deal.
If lawmakers approve the financial and judicial reforms, Greece will be able to press ahead with negotiations for an €86 billion bailout from its creditors.