Copper gains on US data

Copper prices rose Monday, helped by new US manufacturing data as the Institute for Supply Management reported that its manufacturing index was at 58.4 in January, up from 54.9 in December.

March copper added 3 cents to $3.08 per pound in New York trade, while three-month copper on the London Metal Exchange gained $46 to $6,791 per tonne.

The gains came even though worries still remain about the effect China’s new tighter monetary policy will have on demand.

Copper prices fell 8.5 percent in January on rising stockpiles, a trend which continued in today’s session as inventories in LME-monitored warehouses added another 2,475 tonnes to their highest level in nearly a year.

Among other base metals, aluminium was up $5 to $2,085 per tonne on a slight decline in inventories that still left levels near record highs.

Zinc was up $35 to $2,145 per tonne, while nickel dropped $500 to $18,000 per tonne and tin fell $1,050 to $16,150 per tonne.

Precious metals prices were also higher, with April gold adding $21.20 to $1,105 per troy ounce on the possibility that a recent rally by the US dollar will fade, making gold look like a more attractive investment.

March silver was up 47 cents to $16.66 per troy ounce and April platinum added $40.70 to $1,546.70 per troy ounce, while in late morning trade March palladium had added $14.54 to $427.10 per troy ounce.