Gold gains as other metals prices decline

Gold prices were up early on Tuesday, going as high as $989.60 per troy ounce in New York as the US dollar weakened, but prices fell back and August contracts for the metal ended just $5 higher at $978.70 per troy ounce after crude oil prices dropped steeply on economic concerns after Federal Reserve chairman Ben Bernanke told the Senate Banking Committee that risks for both growth and inflation are growing.

Other precious metals prices were lower, with September silver down 24 cents to $19.01 per troy ounce and October platinum plummeting $54.10 to $1,981.90 per troy ounce.

The price of platinum dropped on concerns that high prices will cut demand and spur efforts to develop alternatives to the use of the metal in motor vehicle pollution-control devices.

Among base metals, meanwhile, copper prices declined on new data showing that China imported 19 percent less copper and alloys in June than it did during the same month last year as well as on worries that the global economy could weaken, causing demand to drop.

China imported 91,775 tonnes of copper and alloys in June, compared to imports of 113,074 tonnes in June 2007.

September copper was down 5 cents to $3.70 per pound in New York, while three-month copper dropped $140 to $8,140 per tonne, or $3.69 per pound, on the London Metal Exchange.