Copper, metals fall as housing, manufacturing reports offer discouraging economic picture

Copper, other metals fall on discouraging news

Copper and other industrial metals fell Thursday after discouraging housing and manufacturing news provided more evidence of that the economic recovery may be stalling.

Copper, which is used in everything from pipes to electronic products, settled down 2.5 percent to its lowest level in three weeks. Gold and oil also fell while other commodities were mixed.

Investors have grown concerned that the economic recovery may be faltering, and Thursday’s news just added to the worries. Jobless claims rose last week, construction spending declined 0.2 percent in May, housing sales fell in May and a key manufacturing index slipped in June.

In addition, surveys showed a slowdown in factories’ growth in China and reports from Markit Economics also indicated that manufacturing sector growth was slowing in India, South Korea and Australia.

China and other Asian countries are huge importers of oil and copper, among other commodities.

“It becomes a stone rolling down hill that collects everything,” Lind-Waldock senior market strategist Rich Ilczyszyn said.

He speculated that traders are reducing their risk as they look ahead to the long holiday weekend.

Copper for September delivery fell 7.35 cents to settle at $2.8770 a pound. The price has declined 19.7 percent since the start of the second quarter.

In other September contracts, silver, which trades both an industrial and precious metal, lost 91.8 cents, or 4.9 percent, to settle at $17.790 an ounce. Palladium fell $15.35 to $429.05 an ounce. July platinum fell $27.60 to $1,503.30 an ounce.

Gold for August delivery fell $39.20 to settle at $1,206.70 an ounce.

Oil prices fell for a fourth day amid questions about whether demand would pick up at all during the typically busy summer season.

Benchmark crude oil for August delivery lost $2.68 to settle at $72.95 a barrel on the New York Mercantile Exchange.

Among other August contracts, heating oil fell 7.58 cents to settle at $1.9385 a gallon, gasoline lost 6.28 cents to $1.9976 a gallon and natural gas added 23.8 cents to $4.854 per 1,000 cubic feet.

In September contracts, corn settled up 10.5 cents at $3.7325 a bushel while wheat added 19.50 cents to settle at $4.9975 a bushel. August soybeans rose 6 cents to $9.37 a bushel.