LONDON, England - June 23, 2010 - Copper fell on Wednesday as the dollar rose and U.S. data showed that sales of new homes in the world's largest economy had fallen by more than expected to a record low.

Copper CMCU3 for three months delivery on the London Metal Exchange closed at $6,520 a tonne. The metal, widely seen as a gauge of economic growth, closed at $6,610 on Tuesday.
 
"A weak figure on the home sales is another bearish factor for metals," RBS Global Banking & Markets analyst Daniel Major. "New housing stats last week were weaker than expected, and existing home sales were also weaker than expected, so this could compound the overall weakness."

Sales of new single-family homes tumbled to a record low in May as a boost from a popular tax credit faded, adding to fears of a slowing economic recovery. Copper is used extensively in construction.

The dollar extended gains against the euro following the U.S. housing data and ahead of a decision on interest rates from the U.S. Federal Reserve. A stronger dollar makes metals priced in the U.S. currency more expensive for holders of other currencies.