Gold prices fall on weaker demand

Gold prices fell in New York Thursday on a stronger US dollar that made the precious metal less attractive as an investment, while physical demand was also weak.

Demand from Turkey was said to be so low that it could import the least amount of bullion on record this year.

December gold was down $8.90 to $1,000.40 per troy ounce while December silver fell 19 cents to $16.47 per troy ounce and January platinum was $13.60 lower to $1,289.30.

Earlier, in late morning trade, December palladium which, like platinum is used in jewelry-making and in the manufacturing of pollution control devices for motor vehicles, had dropped $4.40 to $294.80 per troy ounce.

A report showing that manufacturing activity in China grew less than expected hurt copper prices, as did the closure of markets in China until 8 October for a series of holidays while a separate report from the Institute for Supply Management said that US manufacturing activity also expanded less than had been anticipated in September.

December copper was down 8 cents to $2.74 per pound in New York trade, while three-month copper dropped $163 to $5,996 per tonne on the London Metal Exchange.

Other base metals were also down in London trade.