Most metals prices decline on session

Precious metals prices nosedived on Wednesday as the US dollar strengthened in relation to the euro and on demand worries after the International Energy Agency reduced its forecast for oil demand for this year, citing reduced demand in the US due to a weakening economy.

February gold dropped $21.10 to $881.50 per troy ounce in New York while March silver fell 41 cents to $15.89 per troy ounce.

Most base metals were also lower as analysts and traders continue to worry about the US economy and its effect on demand for metals used in construction and for industrial purposes.

Copper fell 7 cents to $3.17 per pound in New York, while three-month copper in London fell about $160 to a range around $6,990/$7,000 per tonne, with the declines putting miners among the biggest losers in London equities markets on the session.

Zinc prices were also lower after LME stockpiles added almost 2,000 tonnes, with the metal closing $10 lower to $2,280 per tonne.

Aluminium was down $13 to $2,470 per tonne while lead fell $55 to $2,600 per tonne and nickel fell $500 to $28,400 per tonne.

Tin prices were higher on the session, adding $85 to $16,300 per tonne.