Gold Inches Lower

In base metals, December-dated Comex copper contracts were falling 5.35 cents a penny at $3.041 a pound while shares of copper miner Phelps Dodge(PD Quote) were losing 1.3%.

"It's tempting to say we've seen the cycle highs for copper," says Neil Buxton, managing director GFMS Metals Consulting in London, noting that prices have fallen back from around $8,000 a ton ($3.63 a pound) in early September. "The descent from the highs will be very different than in previous cycles, because the bullish story is in many ways still intact."

Buxton notes that two bearish factors have helped precipitate the recent decline: an economic slowdown in the U.S., particularly housing, and the continued lower level of exports into China.

Longbow Research took aim at the ferrous metals complex, cutting ratings to sell from neutral on Nucor(NUE Quote), U.S. Steel(X Quote), AK Steel(AKS Quote) and Steel Dynamics(STLD Quote).

Stocks of each were losing recently, with U.S. Steel down 2%, Nucor off 2.7%, AK Steel lower by 1% and Steel Dynamics sliding 3.9%.