Investing.com - Copper futures fell to a three-week low during European morning hours on Thursday, as uncertainty surrounding talks between U.S. lawmakers to avoid the looming fiscal cliff crisis kept investors on edge. On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.583 a pound during European morning trade, down 0.65% on the day. New York-traded copper prices fell by as much as 0.8% earlier in the day to hit a session low of USD3.579 a pound, the lowest level since November 29. Market sentiment was hit by growing doubts over whether a deal to avoid the U.S. fiscal cliff will be reached ahead of the January 1 deadline, fuelling concern that automatic tax hikes and spending cuts will be triggered. A spokesman for President Barack Obama said Wednesday that the White House would veto a tax and spending proposal presented by House Speaker John Boehner. Without a deal, the U.S. could fall back into recession and drag much of the world down with it. Copper traders were looking ahead to a flurry of U.S. economic data later in the day, to gauge the strength of the world’s largest economy. The country was to release the weekly report on initial jobless claims, as well as revised data on third quarter growth and a report on manufacturing activity in Philadelphia. In addition, the U.S. was to publish industry data on existing home sales. Elsewhere on the Comex, gold for February delivery eased up 0.1% to trade at USD1,669.15 a troy ounce, while silver for March delivery added 0.1% to trade at USD31.13 a troy ounce. Trading was expected to remain subdued over the next two weeks, with year-end positioning driving flows and as holidays in many countries limit activity. Lower-than-usual volumes could spark volatile trading, resulting in rapid changes in metal prices during the final weeks of the year.

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