Investing.com - Copper prices inched lower on Wednesday, as traders booked profits from the previous session's sharp rally, which came on the back of a weaker dollar.
Copper for March delivery on the Comex division of the New York Mercantile Exchange dipped 0.6 cents, or 0.28%, to trade at $2.063 a pound during morning hours in London. A day earlier, prices rallied 4.7 cents, or 2.35%.
Meanwhile, three-month copper on the London Metal Exchange declined 0.84% to $4582.25 a metric ton. On Tuesday, prices surged 2.57%.
Despite Tuesday's strong gains, prices of the red metal remain not far above six-year lows hit earlier this week as expectations of higher interest rates in the U.S. and slower global economic growth, especially in China, weighed.
Copper is down more than 10% so far this month as fears of a China-led global economic slowdown and a stronger greenback slammed commodities.
Elsewhere in metals trading, gold extended gains from the prior session on Wednesday, as mounting geopolitical concerns between Russia and NATO member Turkey boosted safe haven demand for the precious metal.
Turkish fighter jets shot down a Russian warplane near the Syrian border after it violated Turkey's airspace on Tuesday. However, Russia's defense ministry said the downed fighter jet did not violate Turkish airspace.
Ahead of the Thanksgiving holiday on Thursday, a flurry of U.S. economic data will be released later in the session, including weekly jobless claims figures, durable goods orders, personal spending and new home sales.
Data released Tuesday showed that the U.S. economy grew more than initially estimated in the third quarter, supporting the case for a rate hike next month.
Gold futures are down 5% so far in November amid mounting expectations the Federal Reserve will raise rates for the first time in nearly a decade at its December 15-16 meeting.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
The U.S. dollar pulled back slightly from an eight-month high against a basket of six other major currencies, as investors locked in profits from the greenback's recent rally ahead of the Thanksgiving holiday on Thursday.
U.S. markets will be closed Thursday for the Thanksgiving holiday and Friday will be a half day.