Gold gains, copper drops on US home sales data

Precious metals prices were higher Tuesday, but copper and other base metals were lower after US home sales data disappointed.

December gold was up $4.90 to $1,233.40 per troy ounce as equities markets dropped and investors looked for safe places to put their cash after the National Association of Realtors reported that July existing home sales in the United States dropped by 27.2 percent, with single-family home sales at their lowest in fifteen years.

Other precious metals followed gold higher as September silver added 39 cents to $18.37 per troy ounce in New York trade, while October platinum was up $9.10 to $1,517.70 per troy ounce and September palladium was 55 cents higher to $484.25 per troy ounce.

September copper, however, was 5 cents lower to $3.24 per pound, hurt by the data on existing home sales on the theory that new home sales, scheduled to be reported on Wednesday, were also lower, which would result in fewer new homes being built, cutting demand for the metal used in construction and manufacturing.

Nearly half of US copper demand is used in construction.

Three-month contracts for copper were down $125.50 to $7,129.50 per tonne on the London Metal Exchange as inventories in LME-monitored warehouses climbed.

Other base metals were also lower in London trade.