Copper Futures Catch a Bid

The copper stocks followed the metal higher, with shares of Freeport-McMoRan Copper & Gold(FCX Quote) surging 6.1%, Southern Copper(PCU Quote) ahead by 3% and Phelps Dodge(PD Quote) up around 1.7%.

Elsewhere, nickel prices were breaking records on the London Metal Exchange, with benchmark contracts for delivery in three months changing hands at $46,190, as stocks dwindled by 220 tons to 3,594 tons. LME stocks totaled about 6,600 tons at the beginning of the year.

Diversified mining stocks were stronger, with BHP(BHP Quote) and Rio Tinto(RTP Quote) up 3.6% and 2.6%, respectively.

As for gold, prices were also gaining on the Comex. April-dated contracts added $4.60 to $647.10 an ounce, largely reversing Wednesday's losses.

Market observers point to new data showing a spike in producer prices and falling claims for unemployment insurance as sparking fears of inflation and adding to the metal's allure as an inflation hedge. Some investors purchase gold as long-term protection against the wealth-withering effects of a generally rising price level.

The bullion ETFs, iShares Comex Gold Trust (IAU Quote) and streetTracks Gold Shares(GLD Quote), were both up about 0.1%.

Foreign exchange traders gave the greenback a mixed reaction. A dollar was buying 117.625 yen, up from 117.07 yen in the prior session, and the euro was changing hands for $1.3234, up from $1.3229 previously. Over time, gold prices tend to move inversely with the value of the U.S. currency.