Gold prices drop nearly $50 in New York

The price of gold dropped significantly Friday on a stronger dollar after the US Labor Department issued a report showing that the US unemployment rate dropped to 10 percent in November, from 10.2 percent in October.

February gold dropped $48.80 to $1,169.50 per troy ounce in New York trade, while March silver fell 61 cents to $18.52 per troy ounce and January platinum was down $44 to $1,449.70 per troy ounce.

Base metals prices were mixed.

March copper was down a cent to $3.24 per pound in New York trade, while three-month copper dropped $40 to $7,040 per tonne on the London Metal Exchange, but not before rising to $7,170 per tonne, copper’s highest level in more than a year, earlier in the session.

The early gains came on the jobs news and on a separate report from the US Commerce department showing factory orders up unexpectedly in October, but the stronger dollar made metals prices more expensive for investors making purchases in other currencies and LME inventories added another 675 tonnes to stockpiles, underlining concerns about demand.

Inventories of aluminium also rose in London, adding 1,025 tonnes, but prices still rose $12 to $2,134 per tonne on the session..

Among other base metals, tin added $95 to $15,270 per tonne, but nickel fell $5 to $16,000 per tonne, lead was $39 lower to $2,370 per tonne and zinc dropped $42 to $2,368 per tonne in London.