Copper prices drop in New York, London

The price of copper fell Wednesday on continuing worries that demand will suffer as the global economy worsens.

March copper dropped 5 cents to $1.55 per pound in New York while three-month copper was down $135 to $3,420 per tonne on the London Metal Exchange.

Some analysts are concerned that the price of copper could fall to as low as $1 per pound, while Freeport-McMoRan (NYSE: FCX) announced that it is suspending its dividend and will cut output over the next two years, sending shares in the copper producer down by as much as 22 percent.

Meanwhile, among precious metals, February gold was down $12.80 to $770.50 per troy ounce in New York as the US dollar gained on the euro in expectation of an interest rate cut from the European Central Bank on Thursday and as the strength of the dollar made gold a less attractive investment.

March silver was also down, falling 3 cents to $9.59 per troy ounce while January platinum dropped $2.20 to $805.10 per troy ounce.