Investor concerns send copper prices lower

Copper prices fell Monday on continued concerns by investors that China could tighten its monetary policy again soon in response to higher inflation.

The worries come on the possibility that changes in policy could hurt demand for copper even though demand from China was up last week and despite analyst comments indicating that even tighter policy would not significantly hurt demand in the Asian nation.

April contracts for copper were down 6 cents to $3.31 per pound in New York trade, while three-month copper on the London Metal Exchange fell $130 to $7,310 per tonne after going as low as $7,255 per tonne earlier in the session.

Among other base metals, aluminium was down $33.50 to $2,227 per tonne in London, while lead fell $62 to $2,203 per tonne.

Zinc and tin were untraded at the end of the session but last bids for zinc were down $55.50 to $2,279.50 per tonne and the last bid for tin was $140 lower to $17,410 per tonne.

Nickel bucked the declining trend and added $65 to $21,500 per tonne.

Precious metals prices were up in afternoon trade in New York as April gold added $3.60 to $1,105.10 per troy ounce, April silver was up 6 cents to $17.08 per troy ounce and April platinum gained $7.40 to $1,613.90 per troy ounce.