Precious metals see gains

Gold prices rose in New York Tuesday after the US dollar weakened on a report that three major US banks are in the process of applying for permission from the Federal Reserve to pay back money they received from the US government’s Troubled Asset Relief Program.

June gold added $5.30 to $927 per troy ounce in New York trade, while July silver was up 30 cents to $14.13 per troy ounce.

Platinum was also higher, up 90 cents to $1,138.50 per troy ounce in morning trade in New York, on hopes that demand in Asia will make up for lack of demand in the United States.

Demand for platinum to make jewelry in Asia could outpace declines in US demand for use in the manufacture of pollution control devices in the United States, according to refiner Johnson Matthey (LSE: JMAT).

Meanwhile palladium, which is also used in jewelry making and the manufacture of pollution control devices, added $3.80 to $233.80 per troy ounce in morning trade.

Among base metals, copper was also higher early on the weaker dollar and on declines in London Metal Exchange inventories, which were down for the ninth consecutive session, both of which raised hopes that demand will improve.

However, by afternoon trade July copper was fractionally lower to $2.07 per pound in New York.