SEC charges against Goldman Sachs hurt copper, gold prices

Most metals prices were lower Friday as investors got rid of risky deals on the news that the US Securities and Exchange Commission has charged Goldman Sachs (NYSE: GS) with civil fraud in connection with some of its mortgage investments and on subsequent declines in equities markets.

Also hurting metals prices was a report that China is ready to begin the gradual adoption of a floating exchange-rate system for its currency.

May contracts for copper were 9 cents lower in afternoon trade to $3.51 per pound, while three-month copper on the London Metals Exchange dropped $182 to $7,763 per tonne.

Aluminium fell $48 to $2,435 per tonne as inventories in LME-monitored warehouses added 3,150 tonnes, but not before its price rose to $2,494 per tonne, its highest in over a year and a half, while nickel dropped $520 to $26,705 per tonne after earlier rising to a nearly two year high at $27,544 per tonne.

Lead was down $79 to $2,261 per tonne and zinc was $86 lower to $2,423 per tonne, but tin added $230 to $19.200 per tonne.

Gold was also hurt by the news of SEC charges against Goldman Sachs, with May contracts down $25.50 to $1,134.20 per troy ounce in afternoon trade in New York, while May silver fell 18 cents to $18.24 per troy ounce and May platinum dropped $8.50 to $1,713.80 per troy ounce.