LME to introduce small cash contracts

Gold prices were up on Monday in response to political tensions over Iran, adding 1.5 percent to $623.60 per troy ounce.

Among base metals, copper was 2.4 percent higher to $7,685 per tonne as the Escondida mine strike in Chile began its third week. Nickel, meanwhile, added 1.8 percent to $28,500 per tonne as inventories in London Metal Exchange warehouses fell another 300 tonnes. Cash contracts for nickel were at $33,000 per tonne.

The London Metal Exchange said it was preparing to offer small contracts, to be electronically traded and settled with cash, for copper, aluminium, and zinc. These contracts, called “LMEminis”, will be tradeable only on the LME’s electronic trading system and are aimed at investors who do not want to physically take delivery of metals.