Gold gains on rate speculation

Most metals prices were higher Wednesday.

Gold and silver both saw gains on speculation that interest rates will not rise soon in the US due to signs, including continuing job losses and rising foreclosures, that the US economy is still slowing.

At the same time, rising inflation left investors looking for safe places to put their money.

August gold was up $6.20 to $893.10 per troy ounce in New York while July silver was 26 cents higher to $17.33 per troy ounce and July platinum gained $27.60 to $2,091.90 per troy ounce.

Base metals prices were higher as well, with the exception of nickel, which fell to $23,150 per tonne in London.

Copper added 9 cents to $3.74 per pound in New York while three-month copper was up $155 to $8,243 per tonne in London on cuts in production in Peru due to protests there.

Lead jumped $20 to $1,885 per tonne on gains in London Metal Exchange inventories, while zinc gained $100 to $1,970 per tonne on speculation that price declines will force some mines to close.

The price of zinc fell 44 percent last year.

Aluminium added $55.50 to $3,092 per tonne and tin gained $525 to $22,550 per tonne.