Metals prices up on falling dollar, rising crude

Precious metals prices were higher in New York on Wednesday as the dollar fell to yet another record low versus the euro after analysts came to the conclusion that the program introduced by the Federal Reserve yesterday to put up to $200 billion into the monetary system will not solve the US economy’s problems.

April gold was up 4.70 to $980.70 per troy ounce around the close of floor trade in New York, while May silver gained 23 cents to $20 per troy ounce and April platinum jumped $15.40 to $2,067.80 per troy ounce.

Among base metals, meanwhile, May copper added 5 cents to $3.84 per pound in New York while three-month copper on the London Metal Exchange was up $130 to $8,405 per tonne on the session.

Investors bought copper and the other metals as a hedge against inflation as the dollar dropped and crude oil prices headed for yet another new high.