Copper futures slumped more than 4% Monday on worries that the spread of the swine flu will dampen the prospect of a global economic recovery. Gold fell modestly.
Copper's loss came amid broad declines in commodities and stocks. U.S. stock futures were indicating a lower opening, while crude-oil futures dropped more than 5% to below $49 a barrel.
"There are worries that the economic turn-around could be slower because of the swine flu," said George Gero, a precious-metals trader for RBC Capital Markets. "If swine flu affects the economy, it's anti-inflationary, and that's dampening gold."
Copper for May delivery lost 9.3 cents, or 4.5%, to $1.9575 a pound in early North American electronic trading. Meanwhile, June gold was down $4.50, or 0.5%, at $909.50 an ounce.
The deadly swine flu outbreak, originated in Mexico, has fueled fears of a repeat of the SARS epidemic that had ravaged Asia. Mexico City's streets were empty Sunday as an estimated 1,614 people in Mexico contracted the swine flu, killing 103 people.
Some analysts said that the spread of the swine flu could push gold prices higher if the disease triggered a global panic.
"The swine flu pandemic might be the one surprise event of 2009 that could engender a quick run into gold for the duration of the panic phase," said Jon Nadler, senior analyst at Kitco Metals Inc.
Holdings in SPDR Gold Trust , the biggest gold exchange-traded fund, stood at 1,104.45 tons Friday, unchanged from a day ago, according to the latest data from the fund.
In other metals, May silver fell 2 cents, or 0.2%, to $12.90 an ounce. June palladium lost $8, or 3.4%, to $227.70 an ounce. July platinum sank $28.90, or 2.4%, to $1,155.10 an ounce.
