Gold gains as demand rises on data

Prices for gold and silver were higher Thursday as US and European equities markets declined and the Labor Department reported that about 6.5 million Americans are received jobless benefits in the week ending 17 January, including 1.7 million who are getting extended benefits because they have been out of work for so long.

The disappointing data, which also included a separate report from the Commerce Department of a drop in durable goods orders in December, increased demand for gold as a safe place for investors to put their money.

April gold added $16.50 to $906.50 per troy ounce in New York, while March silver was up 18 cents to $12.15 per troy ounce and April platinum gained $12 to $975 per troy ounce.

Among base metals, copper prices declined after London Metal Exchange stockpiles rose to 477,675 tonnes during the session, their highest level in over five years and after a report showing that US new home sales dropped again in December, falling to their lowest level since the Commerce Department started keeping records in 1963.

The prospect of fewer new homes being built raised fears that demand for copper in construction projects will continue to decline.

March copper dropped 4 cents to $1.46 per pound in New York, while three-month copper was down $82 to $3,248 per tonne in London.