Oct. 28 (Bloomberg) -- Copper fell for a third day in New York and London as the dollar strengthened and slumping equity markets fed speculation that economic growth is too weak to stimulate metals demand. Commodities may drop “for a while” because of the dollar’s advance, said investor Jim Rogers, who predicted the start of the global raw-materials rally in 1999. The Dollar Index, a six-currency gauge of the greenback’s performance, added as much as 0.3 percent after four gains. The MSCI AC Index of developed and emerging stocks slid for a seventh session, the longest decline since January. “Markets are still running ahead of fundamentals,” said Alex Heath, head of industrial metals trading at RBC Capital Markets in London. “What we’re getting at the moment is a pullback on the basis of the dollar.” Copper for December delivery slid 1.1 percent to $2.9655 a pound on the New York Mercantile Exchange’s Comex division as of 8:25 a.m. local time. The metal for three-month delivery declined $85, or 1.3 percent, to $6,495 a metric ton on the London Metal Exchange. Prices may only draw investors after sliding to $6,200 to $6,300 a ton, Heath said. All the six main industrial metals traded on the LME dropped, led by tin. The LMEX Index has jumped 79 percent this year. Copper has declined 2.4 percent this week in New York as the dollar climbed 1.4 percent against the euro. A weaker dollar makes metals priced in the currency cheaper for holders of other monies. Investors had bought commodities partly on speculation that government spending would revive economic growth, reducing demand for the dollar. Stockpiles Swell Inventories of copper in warehouses monitored by the LME advanced 1,075 tons, or 0.3 percent, to 371,725 tons, the highest since May 13, according to a daily exchange report. Prices rose to a record $8,940 a ton in July 2008. “Fundamentals are really at odds with the current price,” Heath said. “Short term, there’s a little room for a pullback. Medium term into next year, we’re looking for new highs to be achieved.” Among other LME metals for delivery in three months, aluminum fell 1.2 percent to $1,962 a ton and zinc dropped 2.1 percent to $2,265 a ton. Lead declined 0.7 percent to $2,255 a ton, tin lost 3.9 percent to $14,800 a ton, and nickel slid 1.3 percent to $18,440 a ton. To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net

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