China manufacturing data helps copper prices higher

Copper prices were slightly higher Wednesday after the Purchasing Manager’s Index in China rose to 45.3 in January from 41.2 in December, showing that while manufacturing activity is still contracting in China, it is not doing so as rapidly has it had been.

This new data, plus reports showing that contraction is also slowing in the US and UK service sectors held out hope that the global economy could improve soon.

March copper added a cent to $1.53 per pound in New York while three-month copper added $2 to 3,375 per tonne, or $1.54 per pound, on the London Metal Exchange.

Precious metals prices were also up, following gold higher as investors searched for safe places to put their money.

A prediction from UBS (NYSE: UBS; SWX: UBSN; TYO: 8657) that the price of gold will average $1,000 per troy ounce this year also helped prices to climb.

April gold added $9.70 to $902.20 per troy ounce in New York while March silver was up 17 cents to $12.47 per troy ounce, April platinum was $6.20 higher to $971.10 per troy ounce and March palladium gained $5.05 to $198 per troy ounce on the session.