re: lme metals down LONDON (Dow Jones)--Long liquidation pared...

re: lme metals down LONDON (Dow Jones)--Long liquidation pared early gains on London Metal
Exchange copper, trading in thin volume while eyeing developments on the oil
price, traders said.

LME three-month copper traded at $7,955 a metric ton, down $125 on the Friday
PM kerb after an earlier rise to $8,105.

News of an end to a six-week strike at Grupo Mexico SA (GMEXICO.MX) Cananea
mine over the weekend had only a muted effect on prices.

LME participants were focused on oil and precious metals market price moves,
where oil fell sharply Monday morning to $75.60 a barrel after trading close to
record highs of $78.40/bbl earlier.

Spot gold set a fresh two-month high of $676.55 a troy ounce in early trade
but fell following sharp gains of the dollar against the euro to a three-week
high.

Clashes between Israel and Lebanon continued to drive oil and gold prices,
with many LME traders preferring to square positions in light of uncertainty of
developments in the Middle East.

Third Wednesday this week "could provide some interesting price moves" Monday
and Tuesday but volumes have stayed very light so far, a trader said.

LME nickel remained the strongest performer, rising to a fresh record high of
$26,750/ton, up $1,175 or 4.6% in the space of a few ticks.

Falling stocks, down 102 tons to 6,462 tons, and canceled warrants at 55.62%
remain the driving force behind nickel's meteoric 25% price rise since the
beginning of July.

LME aluminum lost ground on Chinese selling during pre-market trade, falling
to $2,550/ton, down $80.

LME zinc traded at $3,385/ton, down $75, lead at $1,123, down $8 and tin at
$8,750, down $90.