Gold tops $1,170 per troy ounce in new record

The price of gold hit yet another new record high Monday morning as the US dollar weakened after the president of the St. Louis Federal Reserve Bank made comments over the weekend which indicated that low interest rates in the United States could last longer than anticipated.

Gold hit $1,174 per troy ounce in morning trade in New York before December contracts fell back but still added $18 on the session to $1,164.80 per troy ounce.

Prices were also supported by new tensions between Iran and Western nations as Iran conducted war games seen as aimed at showing its willingness and ability to protect its nuclear installations.

Among other precious metals, December silver was up 17 cents to $18.61 per troy ounce while January platinum was $25.70 higher to $1,467.60 per troy ounce.

In earlier trade, December palladium followed platinum higher to gain $10.10 to $374.45 at mid-morning.

Among base metals, March copper was 3 cents higher to $3.16 per pound in New York trade.