Gold prices gain as other metals see declines

Gold prices reached another new peak in New York Thursday at $1,227.50 per troy ounce before ending the session below its high but still above Wednesdsay’s close, but other precious metals were lower on the session.

The gains also came after UBS predicted that gold prices could go as high as $1,300 per troy ounce and will average $1,150 per troy ounce next year on purchased by central banks and as investors buy to protect their holdings from a weakening US dollar.

February gold ended the floor trade session up $5.30 to $1,218.30 per troy ounce in New York trade, but March silver was 20 cents lower to $19.13 per troy ounce and January platinum dropped $12.60 to $1,493.70 per troy ounce.

Among base metals, March copper was down a cent to $3.25 per pound in New York, while three-month copper fell slightly to $7,120 per tonne on the London Metal Exchange.

The decline in copper prices came after the Institute for Supply Management said that its services index dropped to 48.7 in November against an expected increase, showing that the US services sector contracted during the month, calling into question economic recovery and causing concerns that demand for the metal used in construction and manufacturing could decline.

Other base metals also saw price declines in London.