Noront Resources

Gold under pressure

LONDON - Gold edged down below $990 (U.S.) an ounce on Monday as the dollar rose versus the euro, prompting a liquidation of long positions in the market after bullion failed to stay above $1,000 an ounce.

But traders saw the precious metal supported around current levels due to jewellery demand picking up ahead of the festive period in India, one of the world's top gold consumers.

Spot gold was at $989.70 an ounce by 0915 GMT, slightly down compared with $990.95 an ounce late in New York on Friday, when gold hit a two-week low of $984.70 an ounce.

"The stronger dollar is the reason which pushed gold below the $1,000 an ounce level," said Eugen Weinberg, Commerzbank analyst said.

Over two weeks ago, gold hit $1,023.85 an ounce, its highest in eighteen months, within a striking distance of its record high of $1,030.80 an ounce struck in March 2008.

But bullion's failure to stay above $1,020 an ounce level has disappointed several investors and prompted an unwinding of long positions, which in the U.S. hit a record high for a third straight week.

Silver was lower at $15.94 from $16.00 "Silver is generally vulnerable to Comex profit-taking," said analyst John Reade at UBS in a research note. "The fact that the surge in Comex speculative longs over the past three weeks has struggled to lift silver prices further flags a specific downside risk over the coming weeks."

Platinum was at $1,274 from $1,272.5 .

Palladium was at $289 from $288.50.

Copper slip to one-month low

LONDON - Copper hit its lowest level since mid-August on Monday, as rising inventories and a firmer dollar helped haul many industrial metals to multi-month troughs.


Aluminum eased to a two-month low at $1,778, while nickel fell to a two-week low at $16,400.


Prices of the red metal used in power and construction have more than doubled this year, as Chinese stockpiling measures, and investors betting on economic recovery, boosted prices.

But as doubts about the pace of any global economic recovery persist, Chinese buying fades and metal inventories rise, analysts said base metal prices could come under pressure.

LME copper stocks added 3,650 tonnes to 344,350 tonnes - its highest level since mid-May, while aluminum inventories slipped 5,525 tonnes but remained near record levels at 4.6 million tonnes.

"Falling Chinese apparent demand implies that demand in the world ex China will need to improve (an end to de-stocking should be sufficient for copper) or stocks are set to build again on the LME," said Macquarie analysts in a note.


Import data from China last week, showed that refined copper imports at the world's largest metals consumer, fell 25 per cent in August.

Chinese markets are closed between Oct. 1 and Oct. 8 for the National Day and Autumn Festival holidays.

In other metals.

Nickel, steel making ingredient traded at $16,600 from $16,900.

Lead was at $2,179 from $2,185.

Zinc traded at $1,867 a tonne from $1,880 and tin was unchanged at $14,400.