Copper declines on profit-taking, bailout concerns

Copper prices were lower Tuesday as investors took profits after Monday’s gains and as they worried about how the plan by the US government to spend up to $700 billion to buy up bad debt from banks would impact metals markets.

December copper was down 10 cents to $3.15 per pound in New York, while three-month copper dropped $353 to $6,980 per tonne on the London Metal Exchange as investors also wondered if demand was really picking up in China, an assumption made after LME inventories in Asian warehouses declined recently.

A gain in aluminium inventories to 13 days of global consumption sent aluminium prices down, dropping $40 to $2.508 per tonne, while zinc was down $70 to $1,770 and tin and nickel each fell $200, to $17,400 per tonne and $17,200 per tonne respectively.

Lead resisted trends, adding $10 to $2,000 per tonne on the session.

Precious metals prices also declined.

December gold dropped $17.70 to $891.30 per troy ounce in New York on less volatility in financial markets after the metal added 5.1 percent on Monday, while December silver fell 28 cents to $13.17 per troy ounce and October platinum was down $23.80 to $1,212 per troy ounce.