Copper up on lower inventories, China news

The price of copper was higher Friday on a pledge from the head of China’s central bank to restore confidence in his nation’s economy and said that he saw signs that the economy is beginning to stabilize.

Copper prices were also helped by another decline in London Metal Exchange stockpiles, which were taken as a sign that China is buying copper since most of the decline came from warehouses in Asia.

Meanwhile, Royal Bank of Scotland (LSE: RBS; NYSE: RBS PRM) predicted that the price of copper will average $1.60 per pound this year, eight cents above the average so far this year.

May copper added 4 cents to $1.69 per pound in New York in afternoon trade, while three-month copper was up $40 to $3,725 per tonne in London.

Precious metals prices were also up on the session as April gold added $14.90 to $942.70 per troy ounce in New York while May silver was up 21 cents to $13.33 per troy ounce and April platinum gained $14.10 to $1,077.80 per troy ounce.

The price of gold was helped by its reputation as a safe place to put cash after the US Labor Department said that the unemployment rate in the United States was up to 8.1 percent in February.