Copper fell to a fresh 5 1/2 -year low during Asian trading hours on Monday, thanks to the strengthening dollar and concerns about weaker Chinese demand for the red metal. At 0406 GMT, benchmark three-month copper futures were trading at $5,405 a metric ton on the London Metal Exchange, down 2% from Friday's close. It is the lowest level for copper since July 30, 2009. The dollar has risen against the euro in recent days following the European Central Bank's decision last week to launch a program of quantitative easing. Copper, which is priced in dollars, becomes more expensive for foreign buyers in their domestic currencies when the dollar strengthens, often in turn leading the commodity's price to fall. Concerns about the outlook for China's property sector are also weighing on copper, which is used to make electric wiring. The property sector constitutes about half of China's copper demand. China, in turn, is the world's biggest copper consumer. Analysts said copper prices could still fall further. "We have been bearish on copper for well over a year and prices have declined by more than 20% over the period," Goldman Sachs said in a report on Monday. "Our latest cost analysis suggests further downside from current prices in 2015." Goldman said copper prices could fall to $5,200 a ton over the coming year because of continued weakness in Chinese demand and rising inventories anticipated at the London Metal Exchange. The presence of a large number of copper producers outside the U.S. also means the metal will be vulnerable to a rising dollar in coming months, it said. Plunging oil prices are also affecting sentiment toward copper because of fears they could cause deflation in some major consuming countries, a trend which could in turn dampen demand. "Copper is being dragged by the price of crude oil. The market sentiment is quite weak," said Avtar Sandu, Singapore-based senior commodity manager at Phillip Futures. Some analysts have suggested support could emerge for copper as China's State Reserve Bureau buys up the metal to keep in reserve, as it often does when prices fall significantly. Purchases by China's state power grids could also help put a floor under prices, although the level at which that might happen remains uncertain. marketwatch