Copper prices drop on inventories, economic worries

Metals prices were mixed on Wednesday.

Among base metals, September copper was 6.75 cents lower in New York to $3.43 per pound and three-month copper dropped $165 to $7,580 per tonne in London as inventories in London Metal Exchange warehouses were higher.

LME stockpiles of the metal used most often in construction in the form of pipes and wires, was up by 8,675 tonnes, its biggest one-day gain since December 2005.

In addition there are worries that demand will decline on the poor housing market in the US and that recent declines in equities markets could affect commodities prices as well.

Still, production has declined this year, at least partly due to strikes, and some analysts believe that could support the price of copper.

December gold was $4 higher to $686.30 per troy ounce as the euro rose again in relation to the US dollar, putting gold’s gains at 7.6 percent so far this year.

Some analysts believe that sentiment expecting US interest rates to stay where they are this year as other central banks raise rates will move investors to buy more gold.

September silver, meanwhile, added 8 cents to $13.17 per troy ounce, but October platinum dropped 20 cents to trade at $1,291.10 per troy ounce.