Gold retreats from record as dollar firms

LONDON - Gold prices retreated on Thursday from the record high above $1,150 (U.S.) an ounce they hit in the previous session, as the U.S. dollar was lifted by profit-taking in higher-yielding currencies.

Spot gold eased 0.75 per cent to $1,135.90 an ounce at 0943 GMT, against $1,144.70 late in New York on Wednesday. In that session it hit a record $1,152.75 an ounce.

U.S. gold futures for December delivery on the COMEX division of the New York Mercantile Exchange fell $4.80 to $1.136.40 an ounce.

However, analysts say as gold has picked up so much momentum during its recent rally, which has lifted prices 9 per cent since the beginning of November, the correction could be short-lived.

++++++++++

Among other precious metals.

Silver edged down to $18.26 an ounce against $18.54, tracking losses in gold. The world's largest silver ETF, the iShares Silver Trust , said its holdings rose to a record 9,021.31 tonnes on Wednesday.

Platinum was at $1,427 an ounce against $1,439.50, while palladium was at $363.50 against $368.50. Rhodium hit a 13-month high of $2,550 an ounce, and ruthenium rose to $85 an ounce, its highest since January.

In supply news, the world's fourth largest platinum miner, Aquarius Platinum, said it planned to resume operations at its Everest mine by Sept 2010 after rehabilitation work.

++++++++++

Copper falls on stronger dollar


LONDON - Copper prices fell on Thursday after touching 14-month highs the previous day, weighed down by a stronger dollar and as investors grew concerned that prices had run ahead of weak fundamentals.

Benchmark copper on the London Metal Exchange traded at $6,830 (U.S.) a tonne at 1035 GMT from a close of $6,880 on Wednesday, when the metal used in power and construction hit a peak of $6,992 - its best level since late September 2008.

"We had a good run early this week, people are taking money off the table," said Citigroup analyst David Thurtell. "The tendency would be to fall back a few hundred dollars ... physical demand is soft and stocks keep on rising."

++++++++++

Among other metals.

Aluminum , used to make vehicles and packaging, was at $2,052.50 a tonne from $2,065, with latest LME data showing stocks surged 35,925 tonnes to total 4.595 million tonnes, near record levels.

LME aluminum stocks have risen sharply this week, with a lot of the deliveries going into warehouses in Detroit - a key car making region - indicating demand from the autos sector is weakening.

But Citigroup's Mr. Thurtell said the market is overlooking bearish stocks data as a lot of aluminum is tied up in financing deals and not available for consumption, while the options trade was also supporting.

An option gives a holder the right to buy or sell a three month contract in the future at a fixed price known as the strike.

"We were hearing a lot of people were buying December 2,000 strikes. When aluminum rose earlier this week, probably there were some option shorts who were having to cover positions, that helped push it above $2,000," he said.

On Wednesday, aluminum hit $2,095 a tonne, its highest since early August.

Zinc was at $2,247 from $2,248,.LME zinc stocks are at four-year highs.

Nickel, the worst performing metal in recent weeks, was at $17,084 from $17,200.

Nickel stocks are at 15-year highs, as demand from the stainless steel sector remains weak.

Battery material lead was at $2,360 from $2,403.

Tin was at $15,100 from $15,195.

++++++++++

24 Hour Base Metals

++++++++++

.

Gold & PGM Prices

Nov 19 2009 7:50AM NY Time dd Change Gold 1135.60 -0.68% Platinum 1423.00 -1.25% Palladium 365.00 -1.08% Rhodium 2380.00 +2.15%