Gold adds $8 in New York trade

Gold prices were higher Thursday as the US dollar weakened, bargain hunters came out, and there was some physical buying by jewelry makers in Asia.

August gold added $8 to $1,168.40 per troy ounce, but some analysts said they expect gold prices to drop further in the short term with no real news to send investors looking for safe places to put their cash.

Other precious metals also saw prices rise, with September silver adding 18 cents to $17.62 per troy ounce and September palladium adding $22.45 to $486.70 per troy ounce, its highest level in a month.

Copper prices were also higher, adding 4 cents on September contracts in New York, to $3.29 per pound, while three-month contracts were 0.9 percent higher to $7,236 per tonne on the London Metal Exchange.

The gains for copper came on a report from the European Commission that economic confidence in the region is at a two-year high, which raised hopes that demand will grow, as well as on a report that unemployment is down in Germany.

Other base metals, including aluminium, lead, zinc, tin and nickel, were also higher in London.