Gold rises above $1,055/oz, copper down

LONDON: Gold prices back above $1,055 an ounce on Wednesday as an early rise in Wall Street stocks pressured the dollar, boosting interest in the metal as an alternative to the US currency. With physical demand for the metal from jewellers and investors in exchange-traded funds still lacklustre, gold is at the mercy of the currency markets, traders said. Spot gold was bid at $1,056 an ounce at 1340 GMT against $1,054 late in New York on Tuesday. US gold futures for December delivery on the COMEX division of the New York Mercantile Exchange eased $1.60 to $1,057 an ounce. Prices have been tracking the euro-dollar exchange rate, with gold reaching record highs of $1,070.40 last week as the dollar hit its lowest in over a year versus the single currency. Among other precious metals, spot silver was at $17.50 an ounce against $17.45. Platinum was at $1,352 an ounce against $1,347, while palladium fell to $331.80 from $334. Copper down: Copper slipped on Wednesday. Three-month copper on the London Metal Exchange was at $6,365 a tonne in official rings compared to Tuesday’s close of $6,416. The metal ended down $49 in the previous session. Aluminium, used in transport and packaging, was at $1,902 from $1,913. Aluminium stocks on the LME rose 9,050 tonnes, flirting with a record high around 4.6 million tonnes and adding to a rise of 35,975 tonnes the day before. But analysts say aluminium prices are supported by a scarcity of material for immediate delivery, because about 70 percent of LME stocks are tied up in finance deals that will start to expire gradually as of the end of 2009. Zinc was at $2,135 from $2,128 and battery material lead was at $2,270 from $2,299. Tin traded at $14,300 from $14,400 and nickel was quoted at $18,875/18,900 from $18,850. reuters