On Monday, the price of copper fell to a three-month low amid the background of recent negotiations between Greece and its international creditors, ended on Sunday night with no agreement on the adoption of reforms in exchange for financial help.
If Greece fails to reach an agreement, it will be forced to default on payment and leave the euro zone.
During European morning trade, on Comex division of the New York Mercantile Exchange, copper for July delivery reached a session low of $ 2634 per pound, the lowest level since March 19, before getting recovered to $ 2.639, down 3.9 cents, or 1.47%.
On Friday, copper rose 0.9 cents, or 0.34%, to close at $ 2678. Futures are likely to find support at $ 2595, the low on March 19 and resistance at $ 2684, the maximum on June 12.
During the talks in Brussels, the representatives of Greece and the European Union failed to reach an agreement on pension reform, budget figures and tax rates, which increased fears of a default, threatening the future of Greece in the euro area.
Europe demands from Greece to reduce costs in the amount of 2 billion euro, for the adoption of an agreement that will unlock additional funds before the end of June, when the country has to pay 1.6 billion euro to the International Monetary Fund.
EU officials accused Greece in futile negotiations, saying that the country has been able to propose new reforms needed for bailout.
In an interview published on Monday, the Greek Finance Minister, Janis Varufakis, considered improbable a Greek exit from the euro zone, noting that debt restructuring is the only promising solution.
Investors are awaiting the meeting of eurozone finance ministers on Thursday, which is currently regarded as the last chance to reach an agreement with Greece's creditors.
Gold futures for August delivery dropped in price by $ 1.20, or 0.1%, to trade at $ 1178.00 per troy ounce, while silver futures for July delivery rose 5.8 cents, or 0.37%, to $ 15.88 price per ounce.
The demand for the US dollar is supported, as investors await the outcome of the Monetary Policy Committee meeting on Wednesday and indications of timing Fed rate increase in the future.
Recent economic reports have shown that the US economy is gaining momentum after slowing in the first quarter, giving rise to speculation that the US central bank may raise rates in September.
Expectations of interest on loans increase have a negative impact on the precious metal because it cannot compete with earning assets during the growing rate.