Copper falls back from early gains

After being up earlier on the government takeover of US mortgage lenders Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) as investors hoped that the intervention would help the global economy and stimulate growth in home construction, a major consumer of copper, the price of the metal lost its gains to trade even at $3.10 per pound in New York.

Earlier, however, three-month copper added $86 to $6,986 per tonne in London after London Metal Exchange inventories dropped 50 tonnes to 200,825 tonnes.

December gold was also up earlier in New York trade, but at the end of the floor session it had dropped 30 cents from Friday’s close to trade at $802.50 per troy ounce.

Additionally, December silver was down 26 cents to $12.07 in New York, while October platinum dropped $14.90 to $1,352.90 per troy ounce.