US home sales data hurts copper prices

Copper prices fell as low as $5,930 per tonne in London during Thursday’s session, its lowest level in a month, after the National Association of Realtors reported in the United States that sales of existing homes there fell by 2.7 percent in August, an unexpected decline after substantial gains in July.

December copper fell 10 cents to $2.71 per pound in New York trade, while London prices ended down $176 to $5,950 per tonne after London Metal Exchange inventories added 8,925 tonnes during the session.

Also hurting prices by denting general sentiment were announcements from the US Federal Reserve and the European Central Bank that they will reduce their programs for emergency lending to banks, as well as the news that workers could vote soon to strike against a BHP Billiton (ASX: BHP; LSE: BLT; NYSE: BHP) mine in Chile.

Declines in equities markets and oil prices hurt not only copper prices but base metals prices generally as aluminium fell $33 to $1,840 per tonne, zinc was down $39 to $1,864 per tonne, lead was $69 lower to $2,171 per tonne, tin fell $300 to $14,350 per tonne and nickel dropped $775 to $17,100 per tonne.

Gold was lower on a dollar that strengthened after the news on existing home sales as investors looked for safe places to put their money.

December gold was down $15.60 to $998.80 per troy ounce while December silver fell 61 cents to $16.30 per troy ounce and October platinum was $19.30 lower to $1,307 per troy ounce.

Earlier, in midmorning trade, December palladium had dropped $2.30 to $295.35 per troy ounce.