LONDON: Gold cut early losses of nearly two percent on Monday amid expectations a $1 trillion aid package aimed at alleviating the eurozone’s debt crisis could cement easier monetary policy, and potentially spark inflation.
The metal fell as low at $1,183.85 in early trade as the package boosted risk appetite, lifting stocks, commodities and the euro. However it later pared those losses, briefly rising back above $1,200, as dollar weakness also helped prices.
Spot gold was bid at $1,198.65 an ounce at 1504 GMT, against $1,207.75 late in New York on Friday. US gold futures for June delivery on the COMEX division of the New York Mercantile Exchange fell $11.20 to $1,199.20 an ounce.
Industrial precious metals also rose, with palladium climbing more than three percent and platinum up two percent at their day highs. Both reflect strong underlying fundamentals, analysts said.
Palladium rallied to a two-year high and platinum to its strongest since July 2008 earlier this year as hopes for a recovery in car demand boosted buying, before correcting.
Platinum was later at $1,686 an ounce against $1,656.50, and palladium at $516 against $510. Silver was at $18.52 an ounce against $18.30.
Copper rises: Industrial metals bounced on Monday, taking heart from a $1 trillion emergency package to stabilise markets and resolve the Greek debt crisis that has threatened to sink the euro.
At 1406 GMT, copper on the London Metal Exchange traded at $7,130.75 a tonne from $6,940 on Friday. The metal, used in power and construction, last week fell 6.5 percent, hitting a trough of $6,632.75 a tonne, its lowest since Feb 10. Copper stocks have fallen 64,200 tonnes since the middle of February to 490,875, while aluminium stocks are down 134,525 to 4.5 million tonnes since a record high above 4.64 million tonnes hit on January 21.
Aluminium traded at $2,140.50 a tonne from $2,072.5, zinc at $2,141 from $2,091, lead at $2,108 from $2,042, tin at $18,020 from $17,600 and nickel at $23,230 from $22,550 on Friday. reuters
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