Copper prices hurt by demand worries, US jobs data

The price of copper dropped in London and New York Thursday on accelerating concerns about demand in China and after first-time jobless claims rose in the United States last week.

Worries that demand could retreat in China came after the government there said it will introduce more stringent rules on mortgage lending to prevent third-home purchases in some cities, demolishing hopes that the Asian nation would relax monetary policy after recent data showing that the economy there is slowing.

Meanwhile, the US Labor Department said that first-time claims for unemployment benefits were up by 19,000 last week to 479,000, their highest level in four months, against an expected decline.

Three-month contracts for the metal used in construction and manufacturing were down $105 to $7,400 per tonne on the London Metal Exchange after going as low as $7,331 per tonne during the session, while September copper was down 5 cents to $3.35 per pound in afternoon trade in New York.

The declines for copper came even though inventories in LME-monitored warehouses fell again.

Aluminium prices were also lower despite a decline in inventories, falling $25 to $2,203 per tonne, while zinc dropped $22 to $2,097 per tonne, lead was down $58 to $2,185 per tonne and nickel dropped $90 to $21,860 per tonne, all in London.

Tin, on the other hand, added $175 to $20,475 per tonne on expected supply shortages in Indonesia.

December gold added $3.40 to $1,199.30 per troy ounce for its seventh consecutive session of gains in New York trade as the US jobs data increased its appeal as a safe place to put cash.

Part of the recent gains for gold, which is up 3.2 percent in seven sessions, had to do with physical demand as Indian jewelry makers gear up for the traditional wedding season in India, but rising prices have moderated that interest to a degree.

September silver also saw gains, adding 4 cents to $18.32 per troy ounce, but October platinum fell $13.70 to $1,572.50 per troy ounce and September palladium dropped $4.10 to $496.05 per troy ounce.