Dismal home sales report sends copper, energy prices lower; gold, silver gain ground

Copper prices lose ground on dismal home sales

Copper lost ground Tuesday after a dismal report on home sales added to concerns about the slowing U.S. economy.

Copper for December delivery fell 5.05 cents to $3.2620 a pound, its lowest settlement price in nearly a month. Other commodities were mixed.

The National Association of Realtors reported July sales of previously occupied homes plummeted to the lowest level in 15 years, which fueled more uncertainty about the economic recovery.

Copper is used in manufacturing and construction products such as copper wiring and pipes, so its price can be affected by weak home sales.

Other reports expected this week will provide more insight into the economy, including durable goods orders and consumer sentiment.

“Commodities are all under attack because of growing fears of a slowdown and no one knows yet if this slowdown is going to turn into like a double-dip or is it just sort of a temporary blip,” MF Global analyst Edward Meir said.

Investors turned to gold and silver, which are considered less risky in uncertain economic times. Gold for December delivery rose $4.90 to settle at $1,233.40 an ounce and December silver gained 38.6 cents to settle at $18.428 an ounce.

Other industrial metals also rose. September palladium rose 55 cents to settle at $484.25 an ounce and October platinum gained $9.10 to $1,517.70 an ounce.

Oil prices sank after the home sales report underscored ongoing worries about a glut of oil supply and weak demand for oil and gas.

Benchmark crude for October delivery fell $1.47 to settle at $71.63 a barrel on the New York Mercantile Exchange. The price of oil has retreated about 13 percent in the past three weeks.

U.S. oil and gasoline supplies remain above the five-year average. Demand has been mediocre for most of the summer and refiners are cranking out products near their operating capacity, keeping inventories high.

In other Nymex trading in September contracts, natural gas for September delivery slipped 2.7 cents to settle at $4.039 per 1,000 cubic feet; heating oil fell 1.97 cents to settle at $1.9357 a gallon; and gasoline lost 3.16 cents to $1.8494 a gallon.

Grains prices all fell. Wheat for December delivery fell 17.75 cents to settle at $7.0775 a bushel; December corn slipped 12.25 cents to $4.2050 a bushel and November soybeans lost 6.5 cents to $9.99 a bushel.