Metals prices drop on stronger dollar

Metals prices were lower on Thursday as the US dollar strengthened, reducing investor demand for metals as a hedge against inflation.

June gold was at a 4-month low as it touched $848.50 per troy ounce in New York, its lowest since January 2, before trading down $13.90 to $851.20 per troy ounce in early afternoon trade.

Other precious metals also saw prices fall, with July silver falling 36 cents to $16.23 per troy ounce and July platinum dropping $35.20 to $1,900 per troy ounce.

Among base metals, Copper was 16 cents lower to $3.74 per pound in New York while three-month copper in London was down $299 to $8,250 per tonne on the London Metal Exchange as declines in inventories are expected to moderate.

Declines were limited by the continuing strike in Chile, which kept some mines closed.