nickel closed at all time high 10900, page-3

Metals produce mixed results
Source: SYDNEY AAP
Date: 2003-Oct-13 07:24 AM

In London, base metals put in a mixed performance at Friday's close on the London Metal Exchange (LME), as some players booked profits after a week of near constant gains, but copper continued climb to after news that a major mine was to close for two weeks.

Copper closed at $1,883, gaining $9 on Thursday's kerb close, having earlier hit a fresh 2-3/4-year high at $1,891.50. The red metal was now targeting resistance at $1,900 a tonne.

Nickel was derailed temporarily in early trading when China said it was selling about 4,000 tonnes of nickel from state reserves, but it soon recovered to notch up fresh 13-year highs.

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Three-months nickel was knocked back to $10,575, but then strengthened to a new peak at $10,940. The metal closed $80 higher at $10,900.

Aluminium dropped $6 to $1,481, but the market was seen supported by renewed tightness in nearby spreads, which could eventually propel prices above $1,500.

The aluminium cash to threes spread showed a small backwardation 30 cents to $1.8, with tightness focused on the October-November dates, which carried a $5.00/5.50 backwardation.

Zinc regained the key $900 threshold after a dip below there earlier in the day, but closed in negative territory at $902 from $904 previously.

Lead was untraded and last indicated at $563/64 from $570 at the last kerb close and tin rose $40 to $5,250.

In New York, the COMEX gold market showed its moxie again on Friday, battling back in currency-focused trade from the previous day's loss, as a range-trading mentality settled over the market.

The strength of the euro against the dollar helped gold recover, as did relief that Thursday's bout of fund liquidation did not threaten the low in last week's hairy shakeout in futures.

December gold ended up $4.30 at $374.10 an ounce, trading from $370.30 to $374.50. On Thursday the contract fell $6.20, stopping at $368.60, $1.60 above last week's bottom.

Spot gold closed at $373.25/4.00, up from $368.80/9.55 late Thursday. London bullion dealers fixed the afternoon reference price at $372.30 an ounce.

Gold remains vulnerable to further selling, though the fall from seven-year highs two weeks ago in the $393-$395 area saw a reduction of the massive speculative long position that has been hanging over the COMEX.

The market is waiting for the CFTC Commitments of Traders report to see if the 95,188 contract net noncommercial long was reduced further this week.

December silver rose 6.8 cents to $4.91 an ounce, trading in a $4.84-$4.925 range. Spot silver was last at $4.89/91, up from $4.82/84. The fix was at