Silver Fixes Lowest Since March 1995

Trading in base metals remained slow following the release of the London Metal Exchange (LME) stocks data, though as expected copper moved to resistance at around $2,200 a tonne.

Three months delivery copper was last at $2,200, up on Thursday's LME kerb close of $2,167.

Traders said copper received a boost from an inventory fall of 2,125 tonnes and late investment fund short-covering on Thursday.

.A slight widening in nearby spreads was also supportive.

Copper's cash to three months backwardation was last at around $118, versus $110.

Silver was fixed at 470.30 cents per ounce on Friday, its lowest fixing since 465.60 cents on March 28, 1995. On Thursday it was fixed at 477.00 cents

Dealers said the market was coming under pressure from weaker gold prices. Bullion was fixed at $364.30, a fresh low fixing since November 3, 1993.

"There is plenty of silver around and with gold prices weakening the sector in general, there is no incentive to buy at these levels," a dealer said.

Technical analysts said the 470-cent level was important if silver was to attract support.

A failure there could take the price back to test 465 cents then 460 cents, they said.

Aluminium on short-covering moved towards resistance at $1,570.

A stocks rise of 4,575 tonnes was largely ignored.Last business was at $1,563, up $8.

Nickel was underpinned by copper and a small stocks fall. It was last at $6,595, unchanged. Lead was unmoved at $707, while zinc settled at $1,062, also unchanged.

Tin was quoted at $5,830/40, against $5,820. Alloy was indicated at $1,430/35, versus $1,425.