Copper prices up on weaker US dollar

Copper prices rose Tuesday as the US dollar weakened versus the euro, but only after early declines that had to do with Monday’s report that China’s copper imports were down last month from the previous month.

Three-month contracts for copper on the London Metal Exchange added $55 to $6,685 per tonne, but only after falling as low as $6,560 per tonne earlier in the session, while the metal used in manufacturing and construction ended the session a cent higher to $3.02 per pound.

Inventories in LME-monitored warehouses were down 2,700 tonnes on the session to 432,500 tonnes, now down 100,000 tonnes from a six and a half year peak in February.

Other base metals followed copper higher, with zinc up $9.50 to $1,865 per tonne while aluminium added $23 to $1,995 per tonne as stockpiles dropped by 6,375 tonnes to 4.38 million tonnes, their lowest level in a year.

Lead was $41.50 higher to $1,826 per tonne, nickel added $350 to $19,550 per tonne and tin gained $475 to $18,000 per tonne.

August gold added $14,80 to $1,213.50 per troy ounce in New York trade on more physical buying from Asia and on safe-haven buying after Moody’s Investors Service cut Portugal’s credit rating two notches, from Aa2 to A1, refocusing concerns about Europe’s debt crisis.

Among other precious metals, silver was up 34 cents to $18.26 per troy ounce in New York, while October platinum added $20.10 to $1,535.40 per troy ounce and September palladium gained $15 to $469 per troy ounce.