Gold rose in Europe on Wednesday, reversing earlier losses, as disappointment with the US bank rescue plan prompted investors to seek out assets such as bullion-backed exchange-traded funds as a haven from risk.
At 1016 GMT it was quoted at $920.70/922.70 an ounce, against $914.15 late on Tuesday.
Holdings of the world’s largest bullion-backed ETF, the SPDR Gold Trust, rose to a record 894.72 tonnes on Feb. 10, up 12.85 tonnes from the previous day.
Spot silver rose to $13.33/13.41 an ounce from $13.10. Silver has also benefited from ETF inflows. Holdings of the largest silver-backed ETF, the iShares Silver Trust, rose 1 percent or nearly 77 tonnes to a record 7,606.89 tonnes on Monday.
Among other precious metals, platinum extended Tuesday’s gains to $1,055/1,060 an ounce from $1,032, while palladium was up at $210.50/215.50 an ounce from $210.
Platinum has risen six percent since early Tuesday on the back of hopes there may be light at the end of the tunnel for the global economy, and as platinum miners reported operational cutbacks.
Copper falls 3%: Copper fell three percent on Wednesday, dragging most of the industrial metals lower, as Chinese copper imports slid and on disappointment over the lack of detail in the latest US financial rescue plans.
Three-month copper on the London Metal Exchange fell to a low of $3,387 a tonne. It was down at $3,415 in official rings from $3,490 at the close on Tuesday.
Aluminium, the only base metal to rise, climbed $1 to $1,400.
Nickel fell as much as 4.6 percent to $10,300 a tonne, the lowest price since Jan. 13, from $10,800 a tonne. It was at $10,525 a tonne in official rings.
Zinc, used to galvanise steel, was last bid at $1,143 compared with $1,177. Lead was last bid at $1,150, unchanged from the close, while tin dropped to $10,895 a tonne from $11,000. reuters
