LME metals mostly lower amid cautious sentiment

02 Nov, 2004

Base metals ended mostly lower levels during Monday's London Metal Exchange (LME) ring trading, as investors shaved profits from a recent rally in a cautious showing ahead of Tuesday's US presidential election and option declarations the day after.
Business volumes were moderate because of public holidays in many European countries, including France and southern German states.
"Trading was a bit slow today and the mood was generally geared towards banking some profits down towards the low end of current price ranges, while adopting a wait-and-see policy ahead of the election and declarations," another trader said.
Investment funds were largely absent, with many having rounded off on Friday on end-month considerations.
"It's the start of a new month, so we may see a few people standing back," one fund source said.
Copper lost much of the ground notched up on Friday, when prices rose nearly five percent, but held above support.
Prices fell below projected support at $2,850, and were kept under pressure by cash offers in the rings. Last trade was at $2,830 a tonne, down from a previous $2,882.
"Closing the kerb at the lower end of this range, a move through Friday's highs (about $2,890) is required in order for fresh gains to be triggered," Mitsui Bussan said in a daily report.
"In the interim until the (US) election result is known, the market looks rangebound and support down to $2,785 per tonne is seen holding.
Aluminium eased to $1,806 from Friday's $1,817, but appears steady above $1,800.
Nickel dropped to $13,550 from a previous $13,840, zinc closed at $1,040, down $23 after sell-stops were hit under $1,045/1,050 and lead lost $4 at $875.
Tin was the exception, rising $110 to $9,110, amid support underneath $9,000.

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