USD gains hurt metals prices

Precious metals prices fell Tuesday, hurt by gains in the US dollar which cut demand for metals as alternative investments.

Also hurting prices for precious metals was a new survey of consumer sentiment by the Conference Board, which showed less confidence in June and sent investors looking for the safety of the dollar.

The Conference Board said that its Consumer Confidence Index fell to 49.3 in June, from 54.8 in May, with both the Present Situation component and the Expectations Index, which focuses on how consumers feel about the prospects of the economy in the next six month, falling this month.

August gold fell $13.50 to $927.20 per troy ounce in New York trade, while September silver was 39 cents lower to $13.59 per troy ounce and October platinum dropped $7.90 to $1,185.30 per troy ounce.

The gains for the dollar also hurt copper prices, as did a report that home prices in US cities have dropped for the 33rd month in a row.

September copper fell 6 cents to $2.27 per pound in New York while three-month copper on the London Metal Exchange was down $83.50 to $5,015.50 per tonne.

Lead and tin prices managed to gain on the session, but aluminium, zinc and nickel all declined, with aluminium dropping 1.9 percent to $1.609 per tonne.