MARKET TALK: Risk Of Copper Correction Damping Gold Sentiment

Risk of sharp correction in LME copper damping gold sentiment, spot gold may slide to $670 if copper corrects, says trader at major Japan house. "The risk is copper. It's gone vertically straight up." Spot gold last at $677.20/oz, +90 cents on NY close; LME 3-month copper +$56 on London PM kerb at $7,885/ton after adding $109 overnight. However, trader says buy-on-dips should keep gold above $670, as market seeing good physical demand from India, Middle East, while investor sentiment remains firm on outlook for weaker USD vs EUR, inflation risks in U.S., possible gains in crude prices.