Gold prices lower as equities recover

Precious metals prices were lower Tuesday as the US dollar saw gains in relation to the euro and after US and European equities markets saw gains after Monday’s historic declines.

The Dow Jones Industrial Average dropped more than 777 points Monday, its biggest point loss in one session in history, after the US House of Representatives declined to approve a bailout plan for the US financial sector, but the index had gained back over 3 percent of Monday’s losses in afternoon trade on Tuesday in bargain hunting by investors.

The better news reduced demand for metals as a safe place to put money amid financial turmoil.

December gold was down $13.60 to $880.80 per troy ounce in New York trade, while December silver fell 75 cents to $12.28 per troy ounce and January platinum dropped $56.40 to $1,028.50 per troy ounce.

Among base metals, December copper was 3 cents lower to $2.88 per pound in New York, while three-month copper dropped $70 to $6,370 per tonne in London.

Prices for copper, which is used in home construction, were hurt by new data showing that house prices in 20 US cities were down by 16 percent in July, an indication that the housing marked might still have farther to fall.