Base metals prices gain on demand hopes

Base metals prices saw more gains Wednesday as it looked as if demand for the metals used in construction and manufacturing could be on the rise.

May copper was up 4 cents to $1.54 per pound in New York while three-month copper added $125 to $3,410 per tonne in London.

The gains came as the amount of the metal scheduled to be removed from warehouses monitored by the London Metal Exchange was up to 30,375 tonnes, an indication that demand is growing.

In addition, zinc added $24 to $1,135 per tonne in afternoon trade in London after China bought domestic supplies to shore up its government reserves.

Aluminium was up $16 to $1,345 per tonne, lead added $35 to $1,030 per tonne, tin was $225 higher to $10,750 per tonne, and nickel gained $270 to $10,080 per tonne.

Meanwhile, precious metals prices were mixed as April platinum added $10.40 to $1,055.90 per troy ounce but gold and silver saw declines.

April gold was down $3.30 to $966.20 per troy ounce in New York, while May silver dropped 12 cents to $13.91 per troy ounce.

Despite gold’s decline on the session, analysts suspect that prices will rise as investors worry that the recession will deepen and credit markets will remain tight, making gold appear to be a safer place to put their cash.