Metals prices soar in first half of 2006

Metals prices were up on Friday as the US dollar weakened in the face of more possible interest rate hikes to come.

Gold added 3.6 percent on the day to $613.50 per troy ounce. It was up over 5 percent this week and is up 19 percent since the beginning of the year, even after dropping $100 dollars from its peak on May 12. Silver was up 7 percent during the week to more than $11 per troy ounce, and is 25 percent higher than its price at the beginning of the year, again despite a 27 percent decline since it peaked on May 11.

Base metals have risen even more this year. Three-month copper was up $130 on Friday to $7,430 per tonne on the London Metal Exchange, taking it up nearly 10 percent this week. Copper prices have risen more than 67 percent since the beginning of the year.

Zinc added 13 percent on the week to $3,240 per tonne, and is up more than 71 percent since the start of the year. Nickel traded at $212,325 per tonne, a gain of 10 percent this week and around 58 percent higher than at the year’s start.