Gold prices had breached 700 dollars on Tuesday for the first time in more than 25 years amid ongoing geopolitical concerns.

Metals were also boosted Wednesday by news that economic powerhouse China planned to set up strategic reserves of copper, aluminum, uranium, coal, iron, and other key mineral resources over the next five years.

The price of copper, used for electrical wiring and plumbing, broke through 8,000 per tonne for the first ever time on Wednesday following the closure of a mine in key producer Mexico.

On the London Metal Exchange (LME), three-month copper prices reached US $ 8,110 per tonne — the highest point since the metal was first listed in 1877. The price of copper has leapt by 84 per cent since the start of 2006.

"Further fund and investor buying are being seen amid news of even more supply woes," UBS analyst John Read said. Mexican mining company Grupo Mexico announced the closure Wednesday of its San Martin plant in northern Mexico amid an ongoing strike at the copper and zinc mine.

According to Read, the "frenzy" of investors rushing to invest their cash, combined with a "cocktail" of supportive factors, means that the current upwards price trend is far from finished.

Zinc, meanwhile, notched up a record peak, striking US $ 3,660 per tonne.

The price of nickel struck its best-ever level, reaching US $ 20,450 per tonne — the highest point since it was first listed in 1979.

Aluminium chalked up the best level for 18 years, with the base metal reaching as high as 3,100 dollars per tonne — last seen in June 1988.

And precious metal platinum climbed to a record high US $ 1,267.75 per ounce on the London Platinum and Palladium Market.

Bumper gains on the metal markets have been underscored by soaring demand from the booming economies of India and China.

According to a Chinese government website on Wednesday, the Asian tiger was aiming to build up its vast energy and mineral reserves to meet the nation’s fast-growing demand.

Metals have also gained ground on the back of a weaker dollar, which makes commodities priced in the US unit on world markets more attractive to buyers using other currencies. -AFP