Copper prices drop on growing stockpiles

Base metals prices fell Tuesday as gains in the US dollar strengthened versus the euro and as inventories saw gains.

Copper was down 5 cents to $3.42 per pound in New York, while three-month copper dropped $80 to $7,580 per tonne in London as London Metal Exchange stockpiles added 3,100 tonnes during the session to 166,900 tonnes, a gain of 52 percent since May and as it was rumored that Shanghai inventories were also rising.

Aluminium prices fell by $12 to $2,768 per tonne while lead was down $30 to $1,855 per tonne, zinc fell $40 to $1,790 per tonne, tin was around $200 lower to $20,700 and nickel dropped $770 to $20,030.

On the other hand, precious metals prices were higher.

December gold added $1.80 to $827.50 per troy ounce while December silver jumped 19 cents to $13.67 per troy ounce after oil prices saw gains as investors looked for places to protect their money from inflation.