Gold prices gain on possible interest rate cut

Precious metals prices were higher on Tuesday in New York trade, but copper declined on continuing worries about demand.

February gold added $12.90 on the session to close at $807.60 per troy ounce on the possibility, which has grown in the past week, that the US Federal Reserve could cut interest rates when it meets later in the month.

The chance that US interest rates could be reduced again weakened the US dollar in relation to the euro.

March silver was also higher, gaining 26 cents to $14.47 per troy ounce.

January platinum was up $10.90 to $1,472.30 per troy ounce as South African workers staged a one-day walk-out aimed at highlighting safety issues in the mines there, while December palladium was $1.95 higher to $348.90 per troy ounce.

March copper was lower on the session, dropping 6 cents to $3.02 per pound in New York, while in London three-month copper fell $110 to $6,690 per tonne.

Copper prices dropped on concerns that demand will drop just as inventories are climbing, although London Metal Exchange inventories dropped slightly during the day’s session.