Metals prices decline

Precious metals prices were substantially lower on Tuesday on a stronger dollar, gains in equities markets, and as investors hoped that the credit crisis might be coming to an end.

June gold dropped $33.90 to $887.60 per troy once, the first time gold had been below $900 per troy ounce in New York in six weeks, while May silver was down 40 cents to $16.91 per troy ounce and June platinum fell $105.60 to $1,937.80 per troy ounce.

In morning trade, palladium dropped $20.05 to $430.15 per troy ounce.

Base metals prices were also lower.

May copper was down 2 cents to $3.81 per pound in New York while three-month copper dropped as low as $8,160 per tonne in London before ending $90 lower at $8,300 per tonne.

Among other industrial metals, zinc fell $10 to $2,310 per tonne while lead dropped $15 to $2,780 per tonne, aluminium was down $26 to $2,959 per tonne, tin was about $500 lower to $20,050 per tonne, and nickel dropped $600 to $29,300 per tonne.

Crude oil prices dropped below $100 per barrel during Tuesday’s session in New York, but although they closed lower they were not able to sustain the dip below the $100 level.

West Texas Intermediate crude for May delivery was down 60 cents to $100.98 per barrel near the close of floor trade on the New York Mercantile Exchange, while Brent crude was up 49 cents to $100.79 at one point on the ICE Futures Europe exchange in London.

Nymex May gasoline was up 1 cent to $2.64 per gallon while May heating oil had dropped 3 cents to $2.88 per gallon and May natural gas had dropped 42 cents to $9.68 per million British thermal units.

Grains prices were mixed.

May corn on the Chicago Board of Trade added 16.75 cents to $5.81 per bushel on indications that farmers will plant less in order to put more acreage into soybeans and wheat as the US government projected that corn acreage will be reduced by 8.1 percent from last year.

CBOT May soybeans were also higher, gaining 19.75 cents to $12.17 per bushel, but May wheat fell 32 cents to $8.97 per bushel.

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