Copper prices up on US new home sales data

Copper prices were higher Monday after equities markets saw gains and on a new report from the US Commerce Department on new home sales in the United States.

September contracts for copper were 4 cents higher to $3.22 per pound in New York to its highest level since mid-may, while three-month contracts were up $120 to $7,149 per tonne on the London Metal Exchange.

The Commerce Department reported that new home sales in the US added 23.6 percent in June above May levels, which were down 36.7 percent from the previous month to an all-time low.

Analysts warned that the June gain is not a sign of real strength in the market, as June was still the second-slowest month for new-home sales on record in the US, with a 7.6 month supply of new homes on hand at the June sales pace.

Still, investors took hope that demand for the metal used in construction and manufacturing will rise on the strength of the June numbers.

Prices for most other base metals were also higher in London trade, but the price of tin declined on the session.

Among precious metals, August gold dropped $4.70 to $1,183.10 per troy ounce in New York trade as prices were hurt by new gains for the euro after the news that most of the banks subjected to stress tests in Europe passed muster.

But other precious metals saw prices rise in New York, with silver adding 10 cents to $18.20 per troy ounce while October platinum added $13 to $1,555.80 per troy ounce and September palladium was up $8.75 to $475 per troy ounce.

The gains for platinum came on supply concerns ahead of a strike vote scheduled for tomorrow at a mine in South Africa.