Copper rises above $8,000 level before falling back in London

Copper prices were higher in London Tuesday but declined in midday trade in New York, while other base and precious metals were mixed.

Three-month contracts for copper on the London Metal Exchange added $105 to $7,990 per tonne after rising to $8,010 per tonne, the first time the price of the metal used in construction and manufacturing has gone above the $8,000 level since August 2008.

Gains were helped by positive data from the US on jobs and the housing market, and on expansion of the services sector, but inventories in LME-monitored warehouses were up 125 tonnes on the session after recent declines and cancelled warrants dropped form March 1 levels, putting into question just how fast demand for copper is recovering.

Prices for May contracts for copper were 2 cents lower to $3.60 per pound in midday trade in New York.

Aluminium was up $14 to $2,365 per tonne in London trade, while lead added $110 to $2,300 per tonne and zinc’s last quotes were up around $47 to $2,448/51 per tonne.

Tin prices were $35 lower to $18,415 per tonne, while nickel went untraded but saw last quotes down about $200 below the previous close.

Among precious metals prices in New York, May gold was $2.70 higher to $1,135.60 per troy ounce but at last report May contracts for platinum were $5.40 lower to $1,698.40 per troy ounce.