Gold down on demand concerns

Precious metals prices were lower Tuesday as investors worried that plans announced by the US government aimed at removing toxic debts from banks’ books will help credit markets will cut demand for the metals as alternative investments.

Prices also fell as equities markets in Asia, most European equities were up and while some US markets were lower, they were up from session lows at early afternoon.

April gold was down $28.70 to $923.80 per troy ounce while May silver was 52 cents lower to $13.36 per troy ounce and July platinum dropped $25.20 to $1,122.70 per troy ounce.

Meanwhile, copper prices fell as demand dropped on a stronger dollar, as US equities markets declined slightly, and as the Federal Reserve reported that manufacturing in the Philadelphia region of the US contracted more than had been expected in March.

May copper dropped 4 cents to $1.81 per pound in New York and three-month copper was down $85 to $3,975 per tonne in London.