Precious metals gain as base metals see mixed results

The price of gold and other precious metals were higher Tuesday after early declines on a report from the National Association of Realtors showing that existing home sales in the United States fell in May.

Sales of existing homes dropped 2.2 percent in the US in May against an expected gain of around 6 percent as analysts figured that there would be a rush to purchase homes ahead of the expiration of a tax credit to buyers.

The session’s gains were modest, however, as investors hesitated ahead of the latest decision on US interest rates from the Federal Reserve, due Wednesday.

August gold added just 10 cents to $1,240.80 per troy ounce in New York, while July silver was up 9 cents to $18.90 per troy ounce and July platinum gained $2.70 to $1,593 per troy ounce.

Meanwhile, base metals prices were mixed.

July copper added 5 cents to $2.99 per pound in New York trade, while three-month contracts were up $6 to $6,610 per tonne on the London Metal Exchange on the possibility that a more freely floating yuan would appreciate, leading China to import more copper and other metals.

Tin and zinc prices were also higher, but nickel and lead decline and aluminium prices held steady.