Gold prices hit another record above $1,080 per oz

Gold hit a new record high Tuesday in New York trade, with prices boosted by a sale of 200 tonnes of gold to the Reserve Bank of India by the International Monetary Fund and by the possibility that India could purchase even more gold.

December gold was up $30.90 to $1,084.90 per troy ounce in New York trade, while December silver added 75 cents to $17.19 per troy ounce and January platinum gained $18.10 to $1,356.20 per troy ounce.

On the other hand, in late morning trade in New York palladium had dropped $4.85 to $321.50 per troy ounce as investors took profits.

Among base metals, December copper was up a cent to $2.96 per pound in New York but three-month copper fell $65 to $6,490 per tonne, or $2.94 per pound, in late afternoon trade on the London Metal Exchange after inventories in LME-monitored warehouses continued to climb, extending concerns over demand strength.

There were some supply concerns as well, however, as talks to end the Spence mine strike in Chile broke down and the strike extended into its third week as the union’s president insisted that workers are ready to remain out.

BHP Billiton (ASX: BHP; LSE: BLT), which owns the mine, has not hired workers to replace strikers and production has been cut at the mine.

Most other base metals were also lower on the session in London.