Copper prices drop on housing, jobless numbers

The price of copper was down in New York and London Thursday on new numbers that have investors worried that demand for the metal used in construction and manufacturing will continue to decline.

The US Labor Department reported that there were 640,000 new unemployment claims filed in the US last week, more than had been expected, and that there are now 6.14 million Americans receiving jobless benefits, another new record.

Additionally, the National Association of Realtors said that existing home sales in the United States fell by 3 percent in March, more of a decline than had been anticipated, while Royal Bank of Scotland (LSE: RBS; NYSE: RBS PRM) forecast that production of copper will top demand by 700,000 tonnes this year.

July copper fell 7 cents to $1.99 per pound in New York while three-month copper dropped $154.50 to $4,385.50 per tonne on the London Metal Exchange.

Precious metals prices, however, were higher in New York as June gold added $13.80 to $906.30 per troy ounce, May silver was 45 cents higher to $12.75 and July platinum gained $21.10 to $1,178.70.