Palladium at ten-year high on proposed new emissions rules in US

December contracts for palladium reached a ten-year high Tuesday, closing trade in New York up $16.65 to $625.45 per troy ounce, while January platinum added $7 to $1,704 per troy ounce after the United States government announced more stringent rules on vehicle emissions for trucks, buses and similar heavy vehicles.

The rules, which are expected to become final next year after the public has a chance to comment and will affect vehicles beginning with 2014 models, sent the metals higher because both are used in the manufacture of emission control systems for motor vehicles.

Silver also gained ground during the day, with December contracts adding 29 cents to $23.83 per troy ounce, but gold ended the floor trade session on the Comex having dropped 30 cents, to $1,338.60 per troy ounce.

December copper, meanwhile, was up about a cent to $3.87 per pound at the close of floor trade in New York after going as high as $3.89 per pound earlier, the highest for a most active copper contract in New York in over two years.

Three-month contracts for copper on the London Metal Exchange dropped $8 to $8,510 per tonne.

The decline in London came even though copper stockpiles in LME-monitored warehouses are at their lowest in a year and analysts now believe that demand will outstrip supply both this year and in 2011..

Contracts for nickel and tin were also lower in London trade, but lead, zinc and aluminium prices were up.