Gold surges through new record

LONDON - Gold hit a record $1,065.25 (U.S.) an ounce in Europe on Tuesday as the U.S. dollar fell to day lows versus the euro, fuelling interest in bullion as an alternative asset.

A rise in oil prices to nearly $74 a barrel and a recovery in physical demand for gold after a sluggish year for the jewellery market are also helping lift the metal, analysts said.

Spot gold was bid at $1,062.55 an ounce at 0957 GMT against $1,055.25 late in New York on Monday. It has rallied 12 per cent since the beginning of September and hit record highs for three consecutive sessions last week.

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Elsewhere spot SILVER was bid at $17.86 an ounce against $17.68. PLATINUM hit a 13-month high of $1,361.50 and PALLADIUM a 13-1/2 month peak of $333 an ounce.

They were later bid at $1,356 an ounce versus $1,336.50 late in New York on Tuesday and at $330 versus $325.50 respectively.

Palladium has outperformed platinum since the beginning of September, rising 15 per cent against 10 per cent for platinum.

"I think speculators are playing the long palladium/short platinum game again, thus keeping the platinum price increase relatively modest," said one platinum group metals trader.

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COPPER up on dlr weakness, demand doubts stick



* Weaker dollar supports base metal prices

* Strong prices this year, weak demand worries investors

* Eyes focus on Chinese imports data on Wednesday



LONDON, Oct 13 (Reuters) - Copper prices rose on Tuesday,
pushed up by a weaker dollar, but were capped by concerns that
prices had run ahead of weak demand.

Copper for three-month delivery on the London Metal
Exchange traded at $6,300 a tonne from $6,275 at the close on
Monday and compared with a session high at $6,329.50.

Highlighting underlying weak demand, LME inventories for
copper, used in power and construction, rose 575 tonnes to
remain near five-months highs at 347,950 tonnes.

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ALUMINIUM traded at $1,945 tonnes in LME rings from
$1,947. Inventories for the metal, used in transport and
packaging, slipped 2,425 tonnes to remain near record highs
close to 4.6 million tonnes.

"High inventories and high prices are keeping buyers in a
holding pattern currently," said investment bank Fairfax in a
note.

NICKEL, steel making ingredient traded at $18,850 from
$18,820 while battery material LEAD was untraded in LME
rings but bid at $2,330 from $2,294.

ZINC was untraded but bid at $2,091 a tonne from
$2,094 and TIN was also untraded but bid at $14,575 from
$14,675.

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24 Hour Base Metals

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Gold & PGM Prices

Oct 13 2009 10:02AM NY Time dd Change Gold 1057.20 +0.05% Platinum 1349.00 +1.05% Palladium 328.00 +0.61% Rhodium 1562.50 +1.60%