Gold gains on search for safetey ahead of economic data

Precious metals prices were mixed Monday as gold advanced but silver held steady and platinum and palladium both declined.

December gold added $1.30 to $1,239.20 per troy ounce on bargain hunting and as investors looked for safe places to put their cash ahead of new data due later in the week, including new figures on US manufacturing and employment, which are expected to add to the argument that the recovery is slowing.

Silver prices held steady as the most active December contracts were at $19.07 per troy ounce and September contracts closed at $19.04 per troy ounce.

Meanwhile, October platinum was $3.90 lower to $1,533 per troy ounce and December palladium dropped $4.55 to $500.10 per troy ounce as some European carmakers and related businesses said they expect demand to decline as the year comes to a close.

Both platinum and palladium are used in the manufacture of pollution control devices for motor vehicles.

December copper was 5 cents higher to $3.43 per pound in New York trade, its highest in four months, helped by data showing that US consumer spending was up 0.4 percent in July.

The metal used in manufacturing and construction was also pushed higher on hopes that government stimulus efforts will boost demand after the Bank of Japan made more credit available earlier in the day.

Trade in metals was light during the day, with the London Metal Exchange closed for the session for a bank holiday.