Precious, base metals prices fall

Gold prices dropped 2.1 percent to $664.60 per troy ounce on Wednesday in volatile trade in Asia. The volatility is expected to continue as long as long positions held by hedge funds and speculative buyers remain numerous. Not even gold’s usual status as a safe haven in times of economic turmoil, such as the recent steep declines in equities markets, was able to generate the demand needed to send prices higher.

The prices of base metals were also lower on the session. Copper fell 3.6 percent to $6,005 per tonne despite the apparent recovery of Chinese demand. New customs data showed that January imports of copper into China was up by 86.3 percent in January over the same month last year, to 131,851 tonnes of the metal.

Nickel prices fell 1 percent to $41,250 per tonne even though inventories are down to 1,878 tonnes, less than half a day’s demand. Aluminium was 1.9 percent lower to $2,825 per tonne, while zinc was down 2.9 percent to $3,475 per tonne and tin dropped 3.1 percent to $13,135 per tonne on a new hitch in exports from Indonesia after seven smelters on one island were told that they have apply once again for export permits.