Investing.com - Copper futures swung between small gains and losses on Wednesday, as weak China inflation data reinforced views that Beijing will roll out fresh support measures soon for the world's second largest economy.
Copper for December delivery on the Comex division of the New York Mercantile Exchange inched down 0.4 cents, or 0.17%, to trade at $2.384 a pound during morning hours in London.
A day earlier, copper lost 2.8 cents, or 1.16%, after data showed China's exports and imports fell in September, adding to concerns over the health of the world's second-biggest economy.
Government data released earlier showed that Chinese producer prices fell 5.9% in September, the 43rd straight monthly decline and matching the worst reading since October 2009.
Consumer prices rose 1.6% last month, below expectations for 1.8% and down from 2.0% in August.
The soft inflation data added to speculation policymakers in Beijing will have to introduce further stimulus measures to boost growth.
Trade data on Tuesday revealed that China's imports shrank far more than expected in September, falling for the 11th straight month. A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere in metals trading, gold futures for December delivery rallied $9.50, or 0.82%, to trade at a three-month high of $1,175.00 an ounce.
Prices of the precious metal have been well supported in recent sessions amid reduced expectations that the Federal Reserve will hike interest rates before the years end.
A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.
A weaker U.S. dollar also lent support to prices. The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.3% to 94.53, a level not seen since September 18.
Investors were looking ahead to U.S. economic reports on retail sales and producer price inflation later in the day for further clues as to the future path of interest rates.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.