Copper prices fall most in three weeks on strong dollar

Copper prices were lower Thursday as a stronger dollar, helped by a rise in leading economic indicators in the US in November, reduced its appeal as an alternative place for investors to put their cash and on a jump in unemployment benefits claims last week in the United States.

March copper was down 8 cents, its biggest one-day drop in three weeks, to $3.13 per pound in New York trade, while three-month contracts on the London Metal Exchange were down $139 to $6,900 per tonne.

The growth in new claims for jobless benefits, which grew by 7,000 last week to 480,000, spurred new concerns that economic recovery in the US will be slow.

Among other base metals trading in London, tin prices saw gains but other metals prices were lower.

Precious metals prices fell as well, as the dollar rose to a three and a half month high versus the euro.

February gold was down $28.80 to $1,107.40 per troy ounce in New York, while March silver was 50 cents lower to $17.20 per troy ounce and January platinum dropped $31.70 to $1,425.90 per troy ounce.

Earlier, in late morning trade, March palladium was also lower, falling $2.15 to $371 per troy ounce.