Gold hits 18-month high
LONDON - Gold rallied to an 18-month high on Tuesday as a report that Gulf Arab states were considering pricing oil in a currency other than the U.S. dollar knocked the U.S. unit, boosting interest in the metal as an alternative asset.
A small seasonal increase in demand for physical gold is also supporting prices, traders said.
Spot gold hit a peak of $1,025.70 an ounce and was bid at $1,024.20 an ounce at 1028 GMT against $1,016.65 late in New York on Monday.
U.S. gold futures also hit an 18-month high. Gold futures for December delivery on the COMEX division of the New York Merca ntile Exchange rose to a peak of $1,029 an ounce and were later up $8.70 to $1,026.50.
Platinum was at $1,303.50 an ounce against $1,293 while palladium was at $297.50 against $298.50.
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Copper climbs above $6,000
LONDON - Copper rose on Tuesday, breaching the $6,000 (U.S.) level as U.S. dollar weakness made the metal cheaper for non U.S. investors, but concerns lingered that prices could be exceeding levels justified by fundamentals.
Copper for three-months delivery on the London Metal Exchange traded more than 2 per cent higher at $6,064.25 a tonne at 0923 GMT, from a close of $5,920 on Monday.
The U.S. dollar fell against a basket of currencies, hurt by a media report, later denied, that Gulf Arab states were in talks to abandon the dollar in oil trade.
Among other industrial metals, aluminum , used in transport and packaging, traded at $1,833 from $1,792.
Zinc was at $1,910 from $1,872 and battery material lead was at $2,154 from $2,090.5, while tin was at $14,320 from $14,200.
Nickel was at $17,850 from $17,550.
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Oil rises above $71
VIENNA - Oil prices rose above $71 (U.S.) a barrel Tuesday, helped by a jump in global stock markets and a weaker dollar, which increases the appeal of commodities to investors.
Benchmark crude for November delivery was up 79 cents at $71.20 by noon European electronic trading on the New York Mercantile Exchange. The contract gained 46 cents to settle at $70.41 Monday.
Oil has meandered near the $70 a barrel level for months as traders struggle to gauge how strongly the U.S. economy will recover.
