Gold prices rise to six-week high in New York trade

Prices for December contracts for gold were up in New York trade Thursday, ending at a six-week high after demand as a safe investment on expanding fears that the economy is not recovering after recent reports of declining industrial output in China and Europe.

Adding to the concerns was today’s report from the US Labor Department that first time jobless claims in the US were up by 2,000 last week to 484,000, against an expected decline to 465,000 new filings.

December gold added $17.50 to $1,216.70 per troy ounce on the session in New York, while September silver added 16 cents to $1,531.60 per troy ounce and October platinum gained $11 to $1,531.60 per troy ounce.

Meanwhile, among base metals September copper added 3 cents to $3.29 per pound in New York trade while three-month copper was up 0.8 percent to $7,255 per tonne on the London Metal Exchange as many investors decided that recent declines were too much considering that inventories are down 19 percent so far this year.

Nickel prices were down in London, but aluminium, zinc, lead and tin were all higher.