Metals prices rise on demand, political concerns

In the metals markets on Tuesday, three-month nickel rose to another new record high as it touched $25,700 per tonne before dropping back to $25,600 late in the day in London. The spot price for the metal, used in the manufacture of stainless steel, was even higher, at $27,650 per tonne in late trade. This brings nickel’s rise since the first of the year to 90 percent. Inventories in London Metal Exchange warehouses is down to 8,400 tonnes, half of it already paid for by customers who have not yet taken delivery. Higher demand from China is a key reason for the rising price of nickel. Copper, aluminium, and zinc prices were also higher.

Gold prices firmed by $15 to $637.50 per troy ounce after the train bombings in Mumbai during the evening rush hour there sent political tensions higher around the world. Silver was also up, by 50 cents, to $11.53 per troy ounce.