Copper futures dampen on falling house prices in China

Copper futures dampened in commodities trading today (November 18th), shedding value for the second consecutive session after data out of China pointed to a cooldown in the country's property market.

On the Comex division of the New York Mercantile Exchange, copper for December delivery dropped $0.08 to $3.032 a pound in the European session - a decrease of 0.26 per cent.

This follows a decline of $0.07 - or 0.23 per cent - in trading on Monday, when the metal edged down to $3.039 a pound, Investing.com reports.

The fall in copper prices comes in light of a report from China's National Bureau of Statistics, which revealed that between September and October, house prices in 69 out of 70 major cities in the country declined. On average, the value of new homes slipped 1.3 per cent month on month, or 2.6 per cent compared against October 2013.

China, which is the world's second largest economy, accounts for almost 40 per cent of copper consumption globally. As such, a cooldown in its property market diminishes demand for the metal, which is used in both construction and home appliances.

As of 10:15 GMT today, copper futures in New York were likely to find support at $2.985 and resistance at $3.061.

Elsewhere on the Comex, gold for December delivery rallied to its highest since October 30th in the European session, rising 1.71 per cent to $1,204.10 on a decline in the USD/JPY currency pairing triggered by two announcements from Japanese prime minister Shinzo Abe.

After it emerged yesterday that the Far East country had entered a technical recession in the third quarter, the premier confirmed that he would both delay a planned sales tax hike by 18 months and call a snap election.

The US Dollar Index, which tracks the greenback against six other major currencies, declined 0.45 per cent to 87.62 on the news.

Weaknesses in the dollar often drive investors towards gold, which is regarded as a safe haven investment in times of economic uncertainty.