Demand worries send base metals lower

A poor demand outlook continued to send base metals prices lower Thursday.

December copper dropped 9 cents to $1.73 per pound in New York while three-month copper fell $265 to $3,805 per tonne in London after the Bank of England, the European Central Bank and Switzerland’s central bank all cut interest rates during the day.

The fact that the Bank of England cut rates more than had been expected made it look like the UK’s economy is worse than had been thought, which might cut demand more than anticipated.

Declines in copper also came after inventories in London Metal Exchange warehouses gained 5,075 on the session, sending gains the past two weeks to over 40,000 tonnes.

Aluminium was down $52 to $2,039 per tonne while lead and aluminium each dropped $52, to $1,459 per tonne and $2,039 per tonne respectively and zinc fell $80 to $1,090 per tonne.

Nickel fell as low as $11,405 per tonne while tin dropped about $300 to trade in a range around $14,575/$14,600 per tonne.

Among precious metals, December gold was down $10.20 to $732.20 per troy ounce in New York after the US dollar strengthened on the interest rate cuts in Europe and after some investors sold their gold  to raise cash as equities markets declined.

December silver, meanwhile, was down 44 cents to $10.02 per troy ounce while January platinum dropped $41.70 per $838.30 per troy ounce.