Gold declines as investors seek more risk

Most metals prices were higher Thursday, but the price of gold fell as investors sought out riskier investments as they gained confidence on advances in global equities markets and on the insistence of China that it will not sell its holdings of Eurozone government bonds.

August gold, currently the most active contracts, were down $2.10 to $1,213.40 per troy ounce in afternoon trade in New York, while June contracts dropped $2.80 to also trade at around $1,213 per troy ounce.

Other precious metals were also higher, with July platinum adding $23.40 to $1,533.70 per troy ounce while June palladium gained $16.80 to $463.15 per troy ounce.

Among base metals, meanwhile, July copper was up 8 cents to $3.16 per pound in New York trade, while three-month contracts for the metal used in manufacturing and construction added 3 percent to $6,985 per tonne.

The gains for copper came as the National Association of Realtors said yesterday that new home sales in the US were up in April and after the US Commerce Department released new data showing that durable good orders were up last month.

Prices for aluminium, lead, nickel, tin and zinc were also higher in London trade.