Gold gains as other metals prices decline

Gold prices were higher Tuesday, but other metals prices fell as investors looked for a safe place to put their cash and even gold’s gains were limited as the US dollar strengthened.

Investors were nervous over declines in global equities markets, which fell amid continuing concerns about Europe’s debt crisis after Spain’s central bank took over a lender over the weekend as well as on new concerns about tensions between North Korea and South Korea.

Rumors circulated that North Korea’s leader has ordered troops and civilians to combat readiness after South Korea accused North Korea of sinking a South Korean naval ship in March and asked the United Nations to censure North Korea over the incident.

June gold added $4 to $1,198 per troy ounce in New York trade, while July silver was down 22 cents to $17.78 per troy ounce and July platinum was $42.60 lower to $1,492.90 per troy ounce.

June palladium dropped $23.15 to $430.40 per troy ounce after Barclays Bank (LSE: BARC) analysts said in a report that the metal, which is used in jewelry making and in the manufacture of pollution control devices for motor vehicles, could fall to $382 per troy ounce on technical issues.

June copper, meanwhile, was 10 cents lower to $3.03 per pound in New York trade, while three-month contracts were down $180 to $6,730 per tonne on the London Metal Exchange even though an analysis by a unit of a Chinese auto-parts manufacturer said that demand for the metal used in manufacturing and construction could grow by 12 percent this year.

Other base metals prices also fell on the session in London.