Precious metals prices climb on demand

The price of gold was higher Tuesday, with December contracts in New York up $19.80 to $886 per troy ounce on the possibility that the US Federal Reserve and the European Central Bank will cut interest rates soon in a bid to help out credit markets.

Gold and other precious metals also saw gains on demand as an investment as more people worry about putting their money in banks.

December silver was up 10 cents to $11.38 per troy ounce while January platinum gained $34.20 to $1,020.70 per troy ounce.

Among industrial metals, December copper was up 4 cents to $2.53 per pound in New York while three-month copper added $140 to $5,700 per tonne in afternoon trade on the London Metal Exchange.

The gain for copper came after the announcement that the Fed will buy commercial paper from banks and corporations as investors hoped the move will improve liquidity and aid economic growth, which could boost demand for copper and other base metals.