LONDON: Gold eased on Wednesday, but a softer tone on equity markets and strong investor interest are expected to support prices of the metal, seen as a safe store of value.
Spot gold was $921.70/922.70 per ounce at 1041 GMT, down from $925.65 late in New York on Tuesday when it fell nearly two percent on fund selling and a stronger dollar.
Gold is up about five percent from a six-week low of $882.90 hit on March 18, but is still more than seven percent shy of the 11-month high above $1,000 set in February. It soared to an all-time peak of $1,030.80 in March 2008.
Strong interest can be seen in the world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust, which said its holdings rose to a record 1,124.99 tonnes on March 24, up 10.7 tonnes from the day before. Spot silver was bid $13.26 an ounce from $13.40 an ounce on Tuesday, palladium at $203 from $205.50 and platinum at $1,118 from $1,114. Platinum used in autocatalysts to clean car emissions has tumbled alongside deteriorating sales in the auto sector. Prices have halved since a record $2,290 in March 2008.
Copper slips: Copper slipped around two percent on Wednesday as a weak consumption outlook prompted investors to take profits after an impressive rally that sent the metal to its highest in more than four months.
Copper for three-months delivery on the London Metal Exchange fell to $3,923 a tonne by 1035 GMT, versus $3,975 a tonne on Tuesday, when it neared its four-month high of $4,135 struck earlier this week. Copper inventories in London fell to 503,675 tonnes, with cancelled warrants slipping slightly to 22,425 tonnes from 22,675 tonnes on Tuesday.
Aluminium also staged a breathless rally over the past couple of weeks, when it rose to its highest in two months, having gained more than 10 percent in March.
LME-registered inventory fell on Wednesday by 3,000 tonnes but still stands at 3.45 million tonnes, near its record highs while the rise year-to-date is at around 1.13 million tonnes. Three-months aluminium was at $1,404 a tonne from $1,412 a tonne on Tuesday while steel making ingredient nickel was at $9,550 from $9,750.
Battery material lead was at $1,260 from $1,284, zinc dropped to $1,260 a toone from $1,275 and tin firmed to $10,150 from $10,025. reuters
