Copper prices down on US home construction data

Metals prices were mixed Tuesday as gold went only a little higher and copper declined on bad news about home construction in the United States.

December copper fell 3 cents to $2.93 per pound in New York trade, while three-month copper dropped $49 to $6,416 per tonne on the London Metal Exchange after housing starts in the US did not rise as much as expected in September and on more gains for LME stockpiles.

The US Commerce Department reported that new home construction was up only 0.5 percent in September, not as much as had been anticipated, while applications for new building permits, an indication of future construction activity, dropped 1.2 percent during the month.

Meanwhile, the session saw copper inventories in LME-monitored warehouses rose another 550 tonnes to close in on their highest level in five months.

Before the declines, however, copper prices went as high as $6,570 per tonne on concerns that a continuing strike against a mine in Chile could have an impact on supply.

Zinc added $16 to $2,128 per tonne after going to $2,155 per tonne, its highest in nearly a year and a half, earlier on concerns raised by a strike in Peru.

Aluminium prices fell $32 to $1,913 per tonne as inventories began to climb after recent declines, with an addition of 35,975 tonnes on the session.

Lead added $11 to $2,299 per tonne, but tin fell $150 to $14,400 per tonne and nickel dropped $425 to $18,850 per tonne in London.

Precious metals prices were also mixed as December gold added 50 cents to $1,058.60 per troy ounce but December silver fell 7 cents to $17.56 per troy ounce and January platinum dropped $7.90 to $1,356.30 per troy ounce.