Gold edges lower after gains

LONDON - Gold prices edged lower in Europe on Thursday on concerns a rally which took the precious metal to record highs of $1,070.40 (U.S.) an ounce in the last session had been overdone.

A fall in the dollar index to 14-month lows pushed gold sharply higher on Wednesday, but it failed definitively to breach resistance at $1,069 an ounce. A further slide of the U.S. currency has failed to spark fresh buying.

Spot gold to $1,055.85 an ounce at 0920 GMT against $1,061.90 late in New York on Wednesday.

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Among other precious metals.

Silver was at $17.73 an ounce against $17.85, tracking the correction in gold, while palladium was at $323 against $326.50.

Platinum was at $1,345.50 an ounce against $1,358, having hit a 13-month high of $1,362.50 an ounce on Wednesday.

"Platinum is holding onto its gains to new highs," said technical analysts at Barclays Capital in a note. "Such price action is encouraging for further gains into the $1,400 area."

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Copper steady; recovery prospects underpin prices

LONDON - Copper was little changed on Thursday, pausing to consolidate its gains but with sentiment remaining upbeat as expectations of economic recovery overshadowed worries over weak demand.

Copper for three-months delivery on the London Metal Exchange traded at $6,216 (U.S.) a tonne at 0932 GMT from a close of $6,220 on Wednesday, when it surged nearly 2 per cent.

"There is still sluggish demand but that's not going to last forever," said Peter Fertig, analyst at Quantitative Commodity Research.

"The housing market in the U.S. has stabilized, we've seen stabilization of economic activity in Europe and stronger growth in Asian emerging markets. These are all positive factors which eventually lead to rising demand."

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Among other industrial metals.

Aluminum was at $1,911 from $1,905, underpinned by LME data showing stocks fell 6,475 tonnes to total 4.5 million tonnes - moving steadily away from a record near 4.6 million tonnes.

Zinc was at $2,020 from $2,034, while battery material lead was at $2,200 from $2,185.


Tin was at $14,450 from $14,250.

Nickel was at $18,351 from $18,550.

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Oil jumps to fresh one-year high

Vienna - Oil prices reached a fresh one-year high above $75 a barrel Thursday, boosted by a weaker U.S. dollar and growing investor optimism about an economic recovery.

A slight drop in U.S. inventories - analysts had expected an increase - also supported prices.

Benchmark crude for November delivery was up 2 cents to $75.20 by midday in European electronic trading on the New York Mercantile Exchange. Earlier it reached $75.96, the highest since October, 2008. The contract added $1.03 to settle at $75.18 on Wednesday.

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Gold & PGM Prices

Oct 15 2009 8:17AM NY Time dd Change Gold 1049.60 -1.23% Platinum 1339.00 -1.47% Palladium 323.00 -1.22% Rhodium 1612.50 +1.55%