Dow Jones – Copper prices edged down on Tuesday after weaker-than-expected economic data from China raised concerns over demand.
The base metal fell 0.51% to $6,863 in early afternoon trade, reversing a gentle rally Monday, driven by a combination of lower prices and supply disruptions.
Gold prices also moved lower, by 0.34% to $1,273.96 a troy ounce.
Chinese official data released Tuesday showed industrial production and fixed-asset investment growth slowed in October.
According to the National Bureau of Statistics, industrial output in China, the biggest consumer of base metals, grew by 6.2%, a tenth of a percentage point less than expected by the market.
"Copper is drifting lower on the back of Chinese output and consumption numbers," said Ole Hansen, commodity strategist at Saxo Bank, noting that both indicators softened in October, adding to the bearish sentiment.
With winter approaching, a traditionally weak season for Chinese demand, investors are worried that copper's rally this year may not continue.