Copper drops on demand concerns

The price of copper fell Monday on concerns that demand for base metals generally will decline if the spread of swine flu after an outbreak in Mexico slows down efforts to help the global economy recover from the recession.

Demand for commodities, including copper, as a safe investment declined, hurting prices, after the dollar strengthened during the session.

July copper was down 4 cents to $1.99 per pound and dropped as low as $1.95 per pound earlier in the day in New York, while three-month copper was $144.75 lower to $4,355.25 per tonne, or $1.98 per pound, on the London Metal Exchange.

Gold prices also declined after the dollar gained on the euro, cutting demand for the precious metal as a safer place to put cash.

Additionally, reports that imports of gold into Dubai were down around 60 percent in the first quarter from the fourth quarter of last year hurt gold prices, although imports were up by 15 percent there over the first quarter of last year.

June gold fell $5.90 to $908.20 per troy ounce in New York and July platinum dropped $28.40 to $1,150.30 per troy ounce but July silver added 4 cents to $12.99 per troy ounce.