Gold declines as base metals prices advance

The price of gold was lower Thursday as it traded around $677.00/$677.70 per troy ounce on the spot market at midafternoon in New York. April delivery gold dropped $1 to $683.00 per troy ounce. Some analysts expect that gold will reach $700.00 per troy ounce due to unsettled conditions around the stand-off between Iran and the West over Iran’s nuclear ambitions as well as its tendency to follow oil prices higher.

Base metals prices were higher on Thursday. Tin, lead and nickel were at or close to multi-year highs, while three-month copper added 6 percent to $6,155 per tonne, its highest price since January 3. Tin was at its highest price in approximately 20 years when it rose to $13,975 per tonne on continuing concerns over supplies out of Indonesia. Meanwhile, lead found a record high of $1,895 per tonne and nickel traded around $40,000 per tonne almost all day.