Copper futures plunge, gold drops to $679/oz

Copper futures on China's SFEX settled sharply lower on Thursday as the overnight slump in LME copper continued during Asian trading, triggering
long liquidation. Most contracts fell by their 4% daily limit at the start of the session and stayed there for the rest of the day.

Gold fell as much as $7.97 (1.2%) to $679.13 an ounce after earlier rising 0.8% to $692.70. The fall was mainly attributed to a section of investors, who had benefited from the metal's surge to a 26-year high this year, selling judging the rally to be overdone.

The decline reversed gains earlier in the day that had come after US consumer prices rose more than expected, fuelling fears of inflation and increasing the attractiveness of bullion as an investment.