Copper gains on lower London, Shanghai inventories

Copper prices were higher in New York and London Friday as inventories in both London Metal Exchange and Shanghai Futures Exchange warehouses were lower, raising hopes that demand could be seeing gains.

London Metal Exchange stockpiles were down to 497, 625 tonnes during the day, while Shanghai inventories dropped to 34,735 tonnes over the week.

Also helping prices higher were comments from Chinese Premier Wen Jiabao that China could be ready to spend more money to help expand its economy and after Barclays Bank (LSE: BARC; NYSE BCS; TYO: 8642) predicted that copper prices will rise to an average of $4,200 per tonne in the second quarter, up from an average around $3,380 per tonne so far this quarter.

May copper was up 4 cents to $1.66 per pound at the close of floor trade in New York, while three-month copper added $90 to $3,670 per tonne on the London Metal Exchange.

Precious metals prices were also higher as April gold added $6.10 to $930.10 per troy ounce, May silver was up 27 cents to $13.22 per troy ounce, and April platinum gained $12.10 to $1,063.50.