Gold remains above US$1,100/oz on weak dollar

The price of gold closed at US$1,101.50/oz Tuesday on the London Bullion Market, down from the previous day's all-time nominal high of US$1,106.75/oz but still just the second time the metal has finished above US$1,100/oz. The price remains high due to a weak dollar and a strong equity market performance, investment firm Barclays Capital said, adding: "Sentiment still remains very positive towards gold and last week's unexpected news of India purchasing half of the IMF's gold earmarked for sale provided the catalyst gold needed to be propelled higher." Silver was down on the LBM to US$17.26/oz from US$17.68/oz the previous trading day. Copper on the London Metal Exchange fell to US$2.937/lb from US$2.978/lb the prior day, and stocks increased 4,675t to 394,150t. Concerns about China's refined imports and rising warehouse stocks are being balanced by higher term premiums agreed by Chile's state copper company Codelco with the Japanese port of Yokohama and South Korea, Barclays said. Copper's fall was accompanied by drops in nickel, lead, tin and zinc, while aluminum was up on the LME.