Copper prices fall on US housing data

Most metals prices were lower Wednesday.

Copper was lower on new data from the US Commerce Department that showed US new home sales down 33 percent in May from April, a new record decline, after a tax credit to buyers declined.

This new data came just a day after the National Association of Realtors said that existing home sales in the US, the vast majority of all home sales there, were down 2.2 percent last month.

July copper was down 6 cents to $2.93 per pound in New York trade, while three-month contracts were down 1.1 percent to $6,540 per tonne on the London Metal Exchange.

The news on home sales has a significant impact on the price of copper because construction accounts for about one-fourth of all copper consumption.

Among other base metals, zinc saw prices rise but aluminium, tin, nickel and lead all joined copper in declines.

Meanwhile, August gold was down $6 to $1,234.80 per troy ounce, falling from a new record high of $1,258.30 set Friday as a stronger dollar meant less demand for the precious metal as a safe alternative place to put cash and ahead of a new decision on US interest rates from the Federal Reserve, due later in the day.

July silver closed down 44 cents to $18.45 per troy ounce, while earlier in the session October platinum was down $32.10 to $1,590 per troy ounce and September palladium had dropped $15.40 to $474.55 per troy ounce.