Gold eases as dollar firms

LONDON - Gold edged lower in Europe on Tuesday, giving up some of the gains that took it to record highs a day before, as the dollar recovered some lost ground, sparking a correction in commodities prices.

But the metal remains well supported above $1,130 (U.S.) an ounce, analysts said, with expectations for further dollar weakness and firm investment interest in bullion as a hedge against inflation expected to underpin this year's 29 per cent gains.

Spot gold was bid at $1,132.15 an ounce at 1019 GMT, against $1,139.05 late in New York on Monday. It touched a record high $1,143.25 an ounce that session.

U.S. gold futures for December delivery on the COMEX division of the New York Mercantile Exchange fell $6,70 to $1,132.50 an ounce.

"After yesterday's push we might see some consolidation, but I think there is probably still a bit more upside left for gold," said Standard Bank analyst Walter de Wet.

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Among other precious metals.

Spot Silver was bid at $18.12 an ounce against $18.36. The metal touched a peak of $18.43 on Monday, its firmest since July 2008.

Platinum matched the last session's 14-month high of $1,451.50 an ounce was later at $1,439 versus $1,441.

Palladium hit a 15-month high of $375.70 before easing back to $368.25 an ounce versus $373.

Fellow autocatalyst material rhodium reached a 13-month high of $2,425.

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Copper off 13-month peak

LONDON - Copper fell on Tuesday as the U.S. dollar recovered and investors saw a rise to 13-1/2 month highs in the previous session as overdone given continuing stockpile gains.

Benchmark copper for three-months delivery on the London Metal Exchange traded at $6,795 (U.S.) a tonne at 1026 GMT, after surging 5.1 per cent to close at $6,855 on Monday, a level not seen since late September 2008.

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Among other industrial metals.

Aluminum, used in transport and packaging, edged up to $2,037.25 a tonne from $2,030, having earlier hit $2,043, a level not seen since mid-August.

Elsewhere, stainless steel-making ingredient nickel, the worst performing metal in recent weeks, was at $16,675 a tonne from $16,800.

Depressing prices, China's state-backed research group Antaike said growth of real nickel consumption was expected to slow to 5.1 per cent next year after a 37.6 per cent surge this year as the stainless steel market digests stocks.

Also weighing on nickel, latest data showed LME nickel stocks jumped 1,032 tonnes to total 132,912 tonnes, their highest since early 1995.


Zinc was at $2,240 a tonne from $2,279, underpinned by news that Australia's Century zinc mine will run out of concentrate at its shipping port later on Tuesday.


Tin was at $14,800 a tonne from $14,985.

Lead, battery material was at $2,353 from $2,390.

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24 Hour Base Metals

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Gold & PGM Prices

Nov 17 2009 7:40AM NY Time dd Change Gold 1128.60 -0.98% Platinum 1437.00 -0.83% Palladium 368.00 -1.60% Rhodium 2287.50 +7.65%

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BlackRock sees recovery in US commodities demand

SYDNEY, Nov 16 (Reuters) - U.S. demand for commodities is
starting to show signs of recovery, commodities funds manager
BlackRock Investment said on Monday.

Evy Hambro, who manages two of the world's largest
commodities funds, BlackRock World Mining Fund and Gold &
General Fund, told reporters during a visit to Australia that
commodities markets generally were also normalising.