Gold prices rise on bailout concerns

The price of gold was up significantly Tuesday on uncertainties about how successful the bailout package for Greece, agreed to by the European Union, would actually be and what effect the program might have on the value of the euro.

May contracts for gold were up $19.50 to $1,219.90 per troy ounce in New York Trade, while June contracts finished the session at $1,220.30 per troy ounce.

Other precious metals also gained as investors looked for concrete places to put their cash, with May silver adding 74 cents to $19.27 per troy ounce while May platinum gained $7.30 to $1,698.80 per troy ounce.

Copper prices were also hurt by concerns about the ongoing debt crisis in Europe, as some analysts wondered were the money to pay for Greece’s bailout would come from, while a report from China showing that inflation in China was at an 18-month high there last month and that bank lending had risen more than expected, led to concerns that the Chinese government could raise interest rates.

May copper was down 2 cents to $3.20 per pound in New York trade, while three-month contracts for the metal used in construction and manufacturing were $70 lower to $7,050 per tonne on the London Metal Exchange.

Prices for aluminium, lead, tin, nickel and zinc were all also lower on the session in London.