LONDON: Gold drifted lower on Friday as the dollar gained and as an initial improvement in risk appetite curbed its safe-haven appeal, although palladium rose to its highest in over a week.
Spot gold was quoted at $1,206.40 an ounce at 1504 GMT versus $1,211.10 an ounce late in New York on Thursday. The safe-haven rally had driven it to a record high of $1,248.95 an ounce two weeks ago. Benchmark US gold futures for June delivery on the COMEX division of the New York Mercantile Exchange was down by $6.4 at $1,205.5 an ounce. India’s gold imports fell an annual 39 percent in May, as record prices hit demand in the world’s top consumer at a time when sales were expected to rise because of a key Hindu festival.
Spot platinum was at $1,560 an ounce after rising to $1,569 an ounce, its highest since May 20 and versus $1,561 an ounce late in New York on Thursday while spot palladium was at $466.50 an ounce versus Thursday’s $462 an ounce. It earlier hit $467.03 an ounce, its highest since May 19. Silver was at $18.34 an ounce versus $18.45 an ounce.
Copper falls off 2-week peak: Copper fell on Friday after weaker-than-forecast US economic data raised demand doubts, squashing early gains to a two-week high made as panic over Europe’s debt crisis subsided.
Benchmark copper on the London Metal Exchange hit $7,043 a tonne, its highest since May 14. But the metal used in power and construction then reversed course to end at $6,939 a tonne from $6,984 at the close on Thursday. On the plus-side however, copper stocks in LME warehouses continued their descent. Latest data showed a 1,050 tonne fall to 476,725 tonnes, a drop of nearly 15 percent since the middle of April.
Also on the radar were LME stocks of tin, down more than 25 percent since late January to 20,060 tonnes, the lowest since September 2009. Tin hit a 4-week high of $18,250 a tonne. It ended at $17,900 a tonne from $17,990 on Thursday, zinc ended at $1,936 from $1,940, lead was last bid at $1,849 from $1,844 and nickel at $21,350 from $21,800.
Steel ingredient zinc and battery material lead hit $1,966.75 a tonne and $1,874.75 a tonne respectively, their highest since May 17. Aluminium was last bid at $2,042 from $2,065. reuters
