Copper price hits one-month low

LONDON, Oct 01 (Reuters): Copper prices hit one-month lows on Tuesday as worries about demand in top consumer China, coupled with a strong dollar, triggered a fresh bout of selling amid low liquidity.

Benchmark copper on the London Metal Exchange (LME) was down 1.5 per cent at $5,639 a tonne at 0949 GMT. Earlier prices of the metal used by investors as a gauge of economic health touched $5,630 a tonne, the lowest since Sept 4.

Traders expect volumes to stay low this week due to celebrations in China to mark the 70th anniversary of the founding of the People's Republic.

"Negative investor sentiment has a lot to do with falling prices and the strong dollar is another negative," said Caroline Bain, chief commodities economist at Capital Economics.

"Copper demand is subdued, but it's not falling off a cliff, and the supply picture is constrained. Given the fundamentals copper prices should be higher."