Copper and gold prices hit six-week lows as industrial and precious metals were sold off amid increasing risk aversion among investors eyeing weakness in equities markets.

The selling in the metals came as Caterpillar, the manufacturer of earthmoving, construction and mining equipment, seen as a barometer of economic activity, cut its full-year forecasts, raising uncertainty about global economic growth. Weaker than expected third-quarter profits at US copper miner Freeport-McMoRan, also worried traders.

Gold fell to a six-week low of $1,713.39 a troy ounce, but later edged up 0.3 per cent to $1,726.31 after the dollar weakened against the euro. Copper for three month delivery on the London Metal Exchange fell as low as $7,930 a tonne and was later trading at $7,958 a tonne.