LONDON: Gold extended gains by more than one percent on Thursday, tracking losses in the dollar, after posting its biggest percentage climb in almost three weeks the previous session.
Platinum and palladium also ticked higher but remained rangebound as traders awaited the outcome of Congress’ discussions of a $14 billion plan to bail out US carmakers. Spot gold was quoted at $822.10/824.10 an ounce at 1017 GMT, up from $809.90 an ounce late in New York on Wednesday, when the precious metal climbed 4 percent on rising oil prices and dollar weakness.
Platinum and palladium traders in particular awaited the outcome of the plan. Spot platinum was quoted at $834.50/854.50 an ounce, up from $822 an ounce late in New York on Wednesday. Palladium was at $180/185 an ounce against $177.50. Among other precious metals, spot silver rose to $10.40/10.48 an ounce from $10.21.
Copper trims losses, nickel up: Copper fell 2.3 percent in early trade as economic growth concerns weighed on sentiment, but the metal trimmed losses as the dollar weakened against the euro ahead of US jobless data on Thursday.
A softer US currency makes metals cheaper for other currency holders and lead gained four percent and aluminium also climbed higher. Nickel rose 5.8 percent on technical buying. London Metal Exchange copper fell to a low at $3,230 a tonne before trading at $3,260 by mid-session against $3,305 on Wednesday, when the metal rose 4.5 percent at one point.
Nickel was indicated at $10,725/10,750 after rising 5.8 percent to a high of $10,900 against $10,300 at the close on Wednesday. Technical buying offset a jump in stocks, up 2,424 tonnes to 68,640 — with LME stocks rising 30 percent so far this year.
Lead hit a high of $1,045, up 4 percent. It traded at $1,035 in the ring. The metal, widely used in batteries, closed at $1,005 on Wednesday. Prices of copper, used in power and construction, have fallen more than 60 percent since a record high of $8,940 in July. Last week it hit $2,991, the lowest since May 2005. As a result of the rapid deterioration in the global economic outlook the research firm cut 2009 copper forecasts to $3,675 a tonne from $4,200 previously.
Aluminium was revised down to $2,290 from $3,000, it said. Tin rose $150 to $12,000/12,005 a tonne, while zinc slid $5 to $1,099 a tonne. reuters
