On Monday, the price of copper is traded near a three-week low to the previous session, as the entrenched US dollar weakened the attractiveness of the industrial metal.
During European morning trade on the Comex division of the New York Mercantile Exchange, copper futures for July delivery fell 0.4 cents, or 0.15%, to $ 2807 for a pound. Prices are traded in a range between $ 2794 and $ 2811.
On Friday, the price of copper fell to $ 2789, the lowest level since April 30, before closing at $ 2811, down 3.7 cents, or 1.32%. Futures are likely to find support at $ 2788, the low from April 30 and resistance at $ 2855, the highest since May 22.
Trading volumes are likely to remain reduced today as markets in the UK, US and Germany are closed due to holidays.
The USD index, which tracks the US currency against the basket of six major rivals, rose 0.25% to 96.50, the highest since April 28.
Demand for the dollar strengthened after the Fed chief Janet Yellen said on Friday that interest rates will be raised later this year. Yellen added that afterwards, in the next few years, the rate hike will be small and gradual.
The dollar also strengthened position after the publication of positive US inflation data on Friday, which strengthened expectations of a rate hike later this year.
A stronger dollar usually suppresses the demand for raw materials as an alternative investment and increases the price of dollar-denominated commodities for holders of other currencies.
Gold futures for August delivery lost 70 cents, or 0.06%, to $ 1204.20 per troy ounce, while silver futures for July delivery fell 1.8 cents, or 0 11%, getting to $ 17.03 per ounce.
The expectations of the increase of interest on loans had a negative impact on the precious metal because it cannot compete with earning assets during the growing rate.
Meanwhile, fears over a possible Greek default continue to prevail among market sentiment on the eve of the deadline, when Athens can reach an agreement with creditors.
Athens do not lose hope to reach an agreement with its external creditors, requiring the implementation of reforms before the country will receive the last tranche in the amount of € 7.2 billion from the total aid package to € 240 billion.
On June 5, Greece is obliged to pay € 305 million to the International Monetary Fund and risks to default if no agreement is reached before that date.