Copper prices up on buying by funds

Copper prices were up Friday as funds made purchases after Thursday’s price declines, but most other metals prices fell on concerns that, if enacted, the rules for US banks proposed yesterday by US President Barack Obama could limit purchases of commodities.

March copper was 5 cents higher to $3.35 per pound in New York, while three-month contracts for the metal on the London Metal Exchange added $125 to $7,390 per tonne.

Inventories of copper in warehouses monitored by the LME dropped 450 tonnes on the session, but they remain near their highest level in nearly a year, a sign that demand is weak.

Among other base metals, tin added $25 to $17,775 per tonne, but other metals used in industry saw declines.

Aluminium was $6 lower to $2,232 per tonne despite a slight decline in inventories from record highs reached earlier in the week, while lead fell $18 to $2,237 per tonne, zinc was down $50 to $2,350 per tonne and nickel dropped $590 to $18,310 per tonne.

Nickel inventories were up 564 tonnes to a new record high, while zinc stockpiles added 1,100 tonnes to their highest level in over four years.

Precious metals prices fell in New York, where February gold was down $13.50 to $1,089.70 per troy ounce, March silver fell 58 cents to $16.93 per troy ounce and April platinum dropped $38.30 to $1,553.80 per troy ounce.