Gold weakens on dollar strength

Precious metals prices were lower Monday as gold prices fell on a stronger dollar and after crude oil prices dropped significantly.

December gold was $5.40 lower to $1,004.90 per troy ounce in New York trade after going as low as $996.30 per troy ounce and as high as $1,008.30 per troy ounce earlier in the session.

Among other precious metals, December silver was down 19 cents to $16.88 per troy ounce and October platinum fell $16 to $1,324.50 per troy ounce, while earlier in morning trade December palladium dropped $6.50 to $298 per troy ounce.

Meanwhile, among base metals, copper prices were higher after a new Conference Board report showing that its Index of Leading Economic Indicators added 0.6 percent in August, the fifth month in a row of gains, which led to the hope that demand for the metal will grow in both construction and manufacturing.

December copper added 2 cents to $2.81 per pound in New York trade while three-month copper was up $40 to $6,215 per tonne in London.

The gains for copper came even though inventories in warehouses monitored by the London Metal Exchange added another 1.3 percent today to 331,825 tonnes, their highest level in 4 months, adding to the case that any rebound in demand is still in the future.

Other base metals prices were mixed in London trade.