Precious metals prices drop on Bernanke interest rate comments

Precious metals prices were lower Tuesday after being up earlier in the session.

The declines came as Federal Reserve Chairman Ben Bernanke told the House Financial Services committee that US interest rates will remain low for some time to come in the absence of any pressure toward inflation.

This cut demand for metals as an alternative investment.

August gold was down $1.80 to $947 per troy ounce while September silver fell 15 cents to $13.48 per troy ounce and October platinum dropped $11.90 to $1,177 per troy ounce.

September copper was down 2 cents to $2.45 per pound in New York trade after having gone as high as $2.49 per pound earlier in the session.

On the other hand, three-month copper in London added $33 to $5,383 per tonne in late afternoon trade there on hopes that demand for use in construction and manufacturing, especially in the manufacturing of motor vehicles, will rise soon.

Other base metals, however, saw prices decline in London trade.