Gold gains in New York; other metals prices lower

Most metals prices fell Tuesday after Standard & Poor’s Rating Services cut Portugal’s credit rating by two levels and warned that further reductions could be coming, while it reduced Greece’s rating to junk status, causing concerns that the debt crisis could spread to other European economies.

The only exception to the declines came as June contracts for gold added $7.90 to $1,161.90 per troy ounce in New York as demand as an alternative investment increased even though the dollar gained on the euro, while physical selling of scrap gold, especially in Asia, increased.

June copper was down 16 cents to $3.36 per pound in New York in afternoon trade, while three-month copper dropped $320 to $7,490 per tonne on the London Metal Exchange after going as low as $7,440.50 earlier in the session even as LME-monitored inventories fell by 775 tonnes during the session.

The decline in copper inventories and an even bigger drop in alumnium stockpiles, which dropped by 6,175 tonnes held out hope that demand will not suffer.

Still, aluminium prices fell $165 to $2,150 per tonne on the session, while lead was down $50 to $2,300 per tonne, zinc was $80 lower to $2,361 per tonne, tin fell $595 to $18,550 per tonne and nickel dropped $1,230 to $27,155 per tonne.

Despite gold’s gain, other precious metals were lower in New York as silver fell 22 cent to $18.12 per troy ounce and platinum dropped $24.10 to $1,718.70 per troy ounce.