Copper prices in the US have dropped for the fourth day in a row, hitting three week lows overnight, and gold futures made a sharp downturn also.

Speculation of reduced consumption saw copper futures for March delivery drop by 2.5 per cent, or 7.5 cents, to $2.961 on the COMEX division of the New York Mercantile Exchange. In London, copper for delivery in March also closed at a three week low, finishing at $US6516 a tonne.

Gold futures also dropped sharply overnight, with falls attributed to a stronger US dollar and weaker crude oil prices.

On both the COMEX division of the New York Mercantile Exchange and the Chicago Board of Trade, February gold lost $US14.80, closing at $804 an ounce.

The BHP Billiton Rio Tinto acquisition story entered a new chapter this week with Rio Tinto requesting a deadline be applied to BHP Billiton’s acquisition bid.

In a statement on December 11 Rio Tinto said an application for a ruling under Rule 2.4 (b) of the UK Takeover Code had been put to the UK Takeover Panel Executive.

The request is in line with Rio Tinto’s refusal to engage in dialogue with BHP Billiton. If a ruling is made, BHP Billiton will be given a timeframe within which to make its intentions known, either in the form of a formal offer or an announcement that it does not intend to make an offer.

It is expected BHP Billiton will be given between six and eight weeks to clarify its position. If BHP Billiton declines to make a formal offer, it will not be allowed to make another offer for six months.

Predictions that BHP Billiton would respond with an increased offer were proved baseless as the Australian giant stuck to its guns and maintained the assertion that the three to one share proposal which valued Rio Tinto at over $150 billion, represented significant value for both sets of shareholders.

Before an investment briefing in London this week, BHP Billiton CEO Marius Kloppers said there was no sense of urgency on BHP’s side, opening the door for suggestion that BHP Billiton may be prepared to wait.