LONDON: Gold steadied on Tuesday, as the dollar softened against the euro and oil prices rose, but trading was muted ahead of a US interest rate decision.
Spot gold was at $837.85/839.85 an ounce at 1501 GMT, little changed from $837.80 an ounce in New York late on Monday. Gold was lower in earlier trade, as investors took profits after Monday’s more than two percent price rise. The metal hit a peak of $844.20, its strongest level since Oct 16.
Interest in gold exchange-traded funds remains firm. The world’s largest gold ETF, the SPDR Gold Trust said its holdings rose by just over three tonnes on Monday. Among other precious metals, platinum edged up to $832/837 an ounce, against $817 in New York late on Monday. Palladium was at $173/178 an ounce from $171.
Platinum reached parity with gold for the first time since 1996 on Thursday, and is holding just below the yellow metal. Spot silver was quoted at $10.57/10.65 an ounce, down from $10.62 an ounce.
Aluminium recovers: Aluminium hit a 5-year low on Tuesday on sluggish demand from the car industry but pared losses as the dollar turned negative against the euro after weak US economic data. Copper also eased off on the dollar’s weakness after falling as much as 4.3 percent as markets awaited the US Federal Reserve’s interest rate decision on Tuesday.
A weaker US currency makes dollar-priced metals cheaper for holders of other currencies. London Metal Exchange aluminium hit $1,435 a tonne, the lowest since October 2003, before trading a $1,490 a tonne by 1512 GMT compared with $1,493 at the close on Monday.
Aluminium stocks rose 10,100 tonnes to 1.943 million, the highest level since November 1994, highlighting sluggish demand. Copper for three month delivery eased to $3,140 from $3,170 at the close on Monday. Earlier it hit a low of $3,034, down 4.3 percent. Nickel fell to $10,000 a tonne from $10,225/10,250 at the close on Monday, lead was at $1,009.5 from $1,025/1,026, while zinc gained to $1,093 from $1,070/1,080. Tin traded lower at $11,275 versus $11,400. reuters
