gold and copper because they were soft enough to be hammered
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because it is!
It was rare and beautiful, so people considered it very valuable. Therefor, they used it for jewelry and trade. However, because gold is soft, it was never used as a tool.
The biggest difference between the two periods was that the Neolithic period saw the advent of tools and implements; the first developments of technology. Paleolithic peoples did not use tools of any kind.
Well their technology is more advanced because in the Paleolithic Era they used crude stone tools. They advanced to bow and arrows.
Neolithic houses were made of varying materials depending on the region. For example, houses in the British Isles were often made of mud and woven twigs. The thatched roof had a hole left in it for smoke to escape as they cooked and heated indoors with fire. In other locations, mud bricks or combinations of mud and stones were used.