Precious metals higher, base metals decline

Gold prices were aided by continuing weakness in the US dollar on Tuesday, adding 1.2 percent to $657.70 per troy ounce. Silver was up 3.2 percent to $13.16 per troy ounce, while platinum was slightly to $1,296 per troy ounce. Palladium was also up slightly to $355 per troy ounce.

Copper dropped 2.8 percent to $8,000 per tonne as rumors spread that China will auction 20,000 to perhaps as much as 100,000 tonnes of copper later in the week in Shangai in its first copper sale of the year by the Asian nation’s State Reserve Bureau.

Nickel dropped 6.1 percent to $21,600 per tonne after Inco reached a provisional agreement with the United Steelworkers on Monday, averting a threatened strike at its Sudbury facility. Strike worries had sent nickel prices up to $23,000 on Friday.

Zinc prices fell 1.5 percent to $2,715 per tonne even though London Metal Exchange zinc inventories were down by 1,350 tonnes.