(RTTNews) - Copper prices dropped sharply on Monday, following a drop across the board for commodities.

December-stamped copper fell to $2.96 per pound, down 6 cents on the session. Prices dropped as low as $2.942 earlier in the session.

The dollar rebounded versus the euro and recovered most of yesterday's losses. The buck also moved mildly higher versus the pound.

Traders looked ahead to a key housing report on Monday. Wending home sales data is due at 10 a.m. ET. A rise of 1% is expected for September, compared to a decline of 0.8% in August.

In economic news Friday, a Commerce Department report showed that personal spending fell by 0.5 percent in September following an upwardly revised 1.4 percent increase in August. The moderate pullback in personal spending came in line with the expectations of economists.

A separate Commerce Department report said personal income decreased by less than 0.1 percent in September after edging up by a revised 0.1 percent in the previous month. Economists had expected income to be unchanged.

A Institute for Supply Management - Chicago report showed that the index of activity in the manufacturing sector rose to 54.2 in October from 46.1 in September, with a reading above 50 indicating growth in the sector. Economists had been expecting the index to increase to a reading of 49.0.

The Reuters and the University of Michigan report showed that the consumer sentiment index was revised up to 70.6 from the preliminary October reading of 69.4, although it remained below 73.5 in September. Economists had been expecting the index to be revised up to a reading of 70.0.

Gold closed at $1,040.40, down $6.70 on the session. Prices hit as low as $1,035.40 earlier in the day.

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