US unemployment numbers hurt copper prices

Copper prices fell Thursday, hurt by the US Labor Department’s weekly report on unemployment claims and a regional report that showed a drop in manufacturing activity.

The Labor Department reported that new unemployment claims were up by 12,000 last week to 500,000, against an expected decline of 10,000 to 478,000, to their highest level in nine months, while the Philadelphia Federal Reserve reported that its general economic index fell to – 7.7 this month, down from 5.1 in July and against an expected gain to 7.

September copper fell 3 cents to $3.32 per pound in New York trade, while the metal used in manufacturing and construction dropped $81 to $7,309 per tonne on the London Metal Exchange, but not before rising as high as $7,496 per tonne earlier in the session.

Most other base metals followed copper lower, with lead falling $17.50 to $2,090 per tonne while aluminium was down $41 to $2,066 per tonne, zinc was $45 lower to $2,090 per tonne and nickel dropped $105 to $21,795 per tonne, but tin added $100 to $21,100 per tonne.

The bad news on unemployment and manufacturing helped gold prices as investors looked for safe place to put their cash, but a stronger dollar forced told to take back some of its gains in afternoon trade.

December gold closed $4 higher to $1,235.40 per troy ounce after going as high as $1.239.50 per troy ounce earlier in the session, but September silver dropped 7 cents to $18.33 per troy ounce.