Metals prices climb while crude oil retreats

Metals prices were higher on Thursday as a number of issues were at work.

High demand and tight supplies sent nickel prices up more than 5 percent. Three-month nickel on the London Metal Exchange was at $28,750 per tonne, close to the record high set last week. Inventories were down by 720 tonnes during the day to 5,172 tonnes, their lowest since July 1991. A strike action at Inco’s Voisey’s Bay mine was also a concern. Copper was up by over 3 percent to $7,710 per tonne even though a strike-ending agreement at Escondida mine in Chile was expected to be approved by workers.

Among precious metals, gold added $4.70 to $623.70/$624.40 per troy ounce on the proposed sale of Glamis Gold to Goldcorp. Meanwhile, silver was over 4 percent higher to $12.70 per troy ounce, a three-month high.

After gains early in the day on Thursday, crude oil prices fell again. The initial price hikes came as Iran seemed set to ignore a United Nations deadline for abandoning its uranium enrichment program, but most traders came to the conclusion that oil will not likely be used as leverage in any resulting conflict. Brent crude October contracts were 33 cents lower to $69.85 per barrel by late afternoon in London after having gone over $71 per barrel earlier. October delivery West Texas Intermediate was down by 18 cents to $69.85 per barrel in early afternoon trade on the New York Mercantile Exchange.

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