Metals mixed on strike, inventories concerns

In metals markets on Tuesday, gold dropped 0.9 percent to $621.90 per troy ounce as rumors circulated that central banks could increase their sales of gold in the next few weeks, ahead of the deadline for the current Central Bank Gold Agreement on September 26. This was not reflected, however, in the European Central Bank’s weekly update, which showed a sale of around 1 tonne of bullion, less than had been expected.

Three-month nickel added 4.8 percent to $29,800 per tonne and went as high as a new record of $29,950 during the day as London Metal Exchange inventories of the metal were up but only to 1,782 tonnes. The cash price for nickel also hit a new high of $33,700 per tonne.

Copper was 0.4 percent lower, to $7,615 per tonne as it was feared that the ongoing strike at Escondida mine in Chile could spread to other mines in that South American nation. At the state-owned Codelco mine, contract negotiations are scheduled for later this year.