Copper prices gain on demand hopes

Copper prices were up in New York before the US House of Representatives voted to pass a bailout plan for US banks on hopes that the measure would stop the slide in US and global economies.

Strengthening economies would, investors hope, boost demand for copper, which is used in construction.

The gains came even though the Labor Department reported that the US lost 159,000 jobs in September, making it look like the economy could sink into recession in any case.

December copper added 6 cents to $2.69 per pound, while three-month copper had added $130 to $5,980 per tonne at last report from London.

Gold‘s December contracts fell $12.30 to $832 per troy ounce in New York trade after a stronger dollar reduced demand for the precious metal as an investment, while December silver added 21 cents to $11.33 per troy ounce after investors decided that its decline of 13 percent yesterday was excessive.

Prices for platinum and palladium were lower on fears that automobile sales in emerging markets will decline, hurting demand for the metals that are used in the manufacture of pollution-control devices for motor vehicles.

Platinum was down $20.80 to $965.80 per troy ounce for its biggest weekly percentage loss in over 22 years, while in mid-morning trade in New York palladium dropped $4.20 to $199 per troy ounce in New York.