BASE METALS: LME Metals Close Mixed after Erratic Session

LONDON, Aug 18, 2010 (Dow Jones Commodities News via Comtex) --

Copper rebounded to close marginally higher on the London Metal Exchange Wednesday after an erratic day of trading in which uncertainty over the economic outlook continued to weigh on the complex.

Base metals ended the kerb close mixed as the markets struggled from a lack of clear direction, with no major statistical releases available to provide cues.

Prices came under particular pressure early-afternoon, with a spate of selling sending the three-month copper contract down 0.8% to an intraday low of $7,310 a metric ton at 1335 GMT.

"U.S. stocks came under pressure after opening, but they did firm up. The primary trigger for the selloff appears to be the move in gold," said Leon Westgate, an analyst at Standard Bank in London.

Spot gold had fallen to an intraday low of $1,216 a troy ounce by 1330 GMT, as some investors booked profits on a lack of fresh drivers for the yellow metal. It has since recovered strongly, though, and at 1700 GMT was trading at $1,231/oz, up 0.6% on the day.

Copper too pushed considerably higher, rallying up 1.1% from its low to close at $7,390/ton.

"It has been a completely erratic day," one senior analyst in London said. "This afternoon copper looked likely to have quiet a bad close for the day, but look where it ended up."

"There doesn't seem to be any reason for some of the moves--the market is just really indecisive at the moment," he added.

Standard Bank's Westgate described the markets as "jittery and nervous."

Recent sustained inventory declines helped to prop up prices, though, market participants said.

Prices in dollar a metric ton.

3 Months Metal                          Bid-Ask                  Change fro

Tuesday PM kerb
Copper                                    7390.0-7391.0             Up 8
Lead                                        2123.0-2123.5             Dn 7
Zinc                                         2134.0-2135.0              Up 11
Aluminum                              2105.0-2105.5              Dn 35
Nickel                                     21850.0-21900.0          Dn 100
Tin                                          20975.0-21000.0           Dn 325
Aluminum Alloy                    2155.0-2165.0               Up 10
Aluminum Alloy-NASAAC      2090.0-2100.0            Dn 30