LONDON: Gold prices tumbled on Monday as traders unsettled by the metal’s failure to break resistance at $930 an ounce sold the precious metal as stock markets recovered.
Gold had risen two percent in earlier trade as the dollar weakened, boosting the precious metal’s appeal as an alternative investment, and as prices of oil and other commodities climbed. But it failed to hold those gains.
Spot gold fell 3 percent to a session low of $821.00, and was quoted at $827.75/831.75 an ounce at 1428 GMT, down from $847.40 in late New York trade on Friday.
Gold is taking support from a slip in the dollar versus the euro, usually a key external driver of bullion prices. The euro rallied broadly after European governments said they would work together to stabilise the banking sector.
Silver climbed more than five percent to a session high of $10.81 an ounce, up from $10.14 in late New York trade on Friday. Later it was trading at $10.45/10.53.
More settled financial markets were expected to support the industrial precious metals — including silver, platinum and palladium — much more than gold.
Palladium climbed more than 5 percent to a high of $199.50 an ounce, before settling back to trade at $197/199 an ounce against $188.
Platinum languished, however, on fears demand from carmakers will be lacklustre this year and into next year. Spot platinum was at $971.50/995.50 an ounce against $980.50.
Copper gains on Escondida supply worry: Copper bounced more than seven percent on Monday as global sentiment improved and the world’s largest copper mine declared force majeure on some deliveries.
Copper for delivery in three months on the London Metal Exchange rose as high as $5,175 a tonne from $4,800 at the close on Friday. It was trading at $5,170 at 1507 GMT.
Aluminium was trading at $2,270 from $2,215 a tonne. The metal has fallen almost a third since reaching a record high of $3,380 a tonne on July 10.
Nickel traded at $13,200 a tonne from $12,175, after rising to a high at $13,300. Prices for the stainless steel raw material dropped 23 percent last week and have plummeted 75 percent since a record high of $51,800 in May 2007.
Lead jumped more than 5 percent to $1,575 a tonne and was last at $1,571 from $1,475 at the close on Friday. Prices fell 13 percent last week in a commodities wide sell-off.
Zinc rose more than five percent to $1,520 and was last at $1,515 from $1,440 on Friday. Tin climbed to $14,500 a tonne from $14,050. reuters
