Copper prices fall on China news

Copper prices were lower Thursday  in New York and London after China’s premier said that China doesn’t need more stimulus spending than already planned to grow the nation’s economy this year.

May copper dropped 4 cents to $1.65 per pound in New York trade while three-month copper was down $60 to $3,685 per tonne, or $1.67 per pound, on the London Metal Exchange.

The price of copper surged Wednesday on expectations that Premier Wen Jiabao would announce further infrastructure projects to stimulate the Chinese economy which would have send demand for the metal used in construction and manufacturing higher.

The price declines came even though LME inventories dropped another 0.2 percent on the session today, the sixth consecutive decline in stockpiles.

Precious metals prices, however, were up in New York.

Gold added $21.10 to $927.880 per troy ounce as it looked like a safer investment than equities after markets declined on more bad news from the housing sector.

The Washington, DC-based Mortgage Bankers Association said that mortgage delinquencies and loans in foreclosure are both at record highs in the United States.

Silver and platinum both also saw gains as May silver added 20 cents to $13.11 per troy ounce and April platinum was $19.80 higher to $1,063 per troy ounce.