Gold lower on stronger dollar

The price of gold fell Friday as the US dollar strengthened as more investors bought the greenback in a search for the safest place to put their cash, and on concerns that China’s economy could slow following moves by the Asian nation’s central bank.

February gold was $12.50 lower to $1,130.50 per troy ounce in New York trade, while March silver fell 23 cents to $18.43 per troy ounce and April platinum dropped to $1,596.10 per troy ounce.

Platinum, however, was up $4.70 to $447.75 per troy ounce after Exane BNP Paribas raised its forecast for 2010 prices to $400, 57 percent higher than an earlier prediciton.

Meanwhile, among base metals, March copper was 2 cents lower in New York to $3.37 per pound, while three-month contracts for the metal used in construction and manufacturing fell $111.50 to $7,407.50 per tonne on the London Metal Exchange.

Except for nickel, which added $112.50 to $18,650 per tonne, other base metals prices also fell in London.