Gold up, copper declines after early gains

A report of two earthquakes of moderate intensity in Chile on Tuesday, as well as a decline of 2,000 tonnes in London Metal Exchange stockpiles, initially sent copper prices up during the day. However, after peaking at $7,105 per tonne, prices ended up 1.7 percent lower at $6,880 per tonne. A report from the International Copper Study Group said that the first quarter of 2006 saw a surplus of 64,000 tonnes in the copper market, compared with a deficit of 89,000 tonnes during the same period last year. The report added, however, that there was no evidence of the reported surplus in warehouses and that consumption data is often revised upward.

Nickel inventories also fell during the day, by 696 tonnes, sending the price of nickel up 1.4 percent to $20,250 per tonne. The prices of zinc and aluminium were down by 0.5 percent to $2,975 per tonne and by 1.7 percent to $2,505 per tonne respectively.

Precious metals prices were up during the day. Gold added 1.8 percent to $595.60 per troy ounce, while silver was up 3.3 percent to $10.60 per troy ounce. The price of platinum rose slightly to $1,190 per troy ounce and palladium was trading at $313 per troy ounce.