Metals prices higher on increased risk appetite

Metals prices were higher Tuesday as investors looked for riskier trades on fewer worries about the charges against Goldman Sachs (NYSE: GS) after the bank said its earnings almost doubled in the first quarter and as other banks also announced positive results.

The trouble for Goldman Sachs also produced fewer concerns as it looked less likely that inquiries like that which produced the charges against the bank will spread to other companies.

May copper was up 3 cents to $3.52 per pound in midday trade in New York, while three-month contracts for the metal added $94 to $7,790 per tonne after going as high as $7,851 per tonne in earlier trade on the London Metal Exchange.

Inventories of the metal used in manufacturing and construction in LME-monitored warehouses dropped 350 tonnes on the session.

Aluminium gained $16 in London to $2,385 per tonne even though inventories were up by 10,100 tonnes.

Zinc was untraded at the end of the session, but it was last quoated as being up $60 to around $2,450 per tonne, while lead added $105 to $2,345 per tonne and tin gained $425 to $19,250 per tonne.

Nickel was up $635 to $27,285 per tonne after going as high as $27,590 per tonne on the news that a magnitude 5.0 to 5.2 earthquake had temporarily closed mines in the Kalgoorlie region of Western Australia.

It was characterized as the biggest temblor in fifty years in the gold and nickel mining region.

May gold was $4.40 higher to $1,139.60 per troy ounce in midday trade in New York even though physical demand is said to be low in Dubai and India, two of the biggest consumers of the metal.

May silver was up $17 to $17.89 per troy ounce while May platinum had added $27.20 to $1,720 per troy ounce and June palladium was up $16 to $549.70 per troy ounce, also in New York trade.