Copper futures slumped on the closing trading today after U.S. data on home sales helped the dollar rallied diminishing demand for commodities.
U.S. new-home sales dropped 8.5 percent in March its lowest rate since October 1991, a report from the Commerce Department said signaling demand of copper weakened since the red metal is greatly used in pipe and wires for home construction.
The dollar gained 1.3 percent against a basket of six major currencies including the euro which dropped 1.5 percent the most in more than three years.
Copper futures for May delivery in the Comex division of the New York Mercantile Exchange closed falling $2.90 cents to $3.8750 a pound.
In addition, today data showed U.S. jobless claims had a steep decline -more than analysts forecasted- last week supporting gains in the dollar.
Meanwhile in Chile a labor strike in Codelco, the largest producer of copper in the world, is hitting its ninth day disrupting production of the red metal.
Copper in the London Metal Exchange declined $30 or 0.4 percent to $8,525 a metric ton today.