LONDON: Gold edged lower in Europe on Thursday but interest in physical bullion as a haven from risk, as investors worry about the global economic outlook, is supporting the precious metal above $850 an ounce.
Spot gold was quoted at $850.40/852.00 an ounce at 1016 GMT, down from $854.05 an ounce late in New York on Wednesday. Investors fretting about the prospects for other asset prices are buying coins and bars, traders said. The world’s largest bullion-backed ETF, New York’s SPDR Gold Trust, said its holdings rose to a record 805.96 tonnes on Wednesday. Among other precious metals, silver edged down to $11.23/11.29 an ounce from $11.31 an ounce. Platinum remained broadly rangebound, building a base below $1,000 after sharp falls in the later part of 2008. Platinum was at $924/934 an ounce, little changed from $923.50 late in New York on Wednesday, while palladium was at $182.50/186.50 an ounce, down from $183.50.
Copper eases: Copper eased more than one percent on Thursday as negative economic data from China, the world’s top consumer of the metal, added to the gloomy demand outlook.
Three-month copper on the LME fell 1.4 percent to a low of $3,170 a tonne. It traded at $3,190 a tonne in official rings, down from $3,215 a tonne at the close on Wednesday. LME copper stocks rose 4,975 tonnes to a fresh five-year high of 422,450 tonnes - equivalent to more than a week of global copper demand. Aluminium traded at $1,349 a tonne versus $1,335 and is close to the lowest level since April 2003. Elsewhere, nickel rose $245 to $11,150. Lead traded at $1,105 from $1,087 a tonne, zinc dipped $18 to $1,132, while tin was down $200 at $11,400. reuters
