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Gold lower after US data strengthens dollar LONDON - Gold fell within minutes of the release of some strong data from the US which lifted the dollar. The precious metal, which is seen as an alternative asset to the US currency, softened after the data showed the US economy grew at a slightly faster pace in the last three months of 2006 than thought previously -- pulling the dollar higher. The Commerce Department estimated the US economy grew at a 2.5 pct annualised rate between October and December, faster than the 2.2 pct estimated before. At 2.17 pm, gold was at 661.20 usd per ounce, down from 666.50 usd in late New York trades yesterday. It had lost 1.2 pct earlier in the session to touch 658.38 usd. Gold has eased since hitting four-week highs of around 669 usd yesterday. The precious metal retreated after Federal Reserve chairman Ben Bernanke diminished expectations of an imminent interest rate cut yesterday -- news which lifted the dollar. In the longer term, most analysts are still upbeat about gold's prospects with most calling for the 700 usd level to be tested before this year ends. Steel at HSBC forecasts gold to average 680 usd for 2007. Among other metals, silver edged down to 13.23 usd an ounce against 13.38 usd in late New York trade yesterday. Platinum was down at 1,237 usd against 1,242 while palladium was unchanged at 351 usd. At 12.03 pm, LME copper for three month delivery was up at 6,705 usd a tonne against 6,660 usd at the close yesterday. Copper closed down yesterday on renewed worries over the health of the US economy after Federal Reserve chairman Ben Bernanke told congress that uncertainties over the US economic outlook have ticked up in recent weeks. He also told congress that the central bank has not changed its official "bias" toward inflation. However, BNP Paribas analyst David Thurtel noted the metal had staged a rally before the Bernanke testimony yesterday and that its performance overall was pretty solid considering the economic woes. Copper has been underpinned recently by a 15 pct decline in LME inventories this month and by signs of increasing demand from China, the world's largest consumer of the metal. Tin fell to 13,300 usd a tonne after touching a month low of 13,100 usd earlier, as traders continued to take profits from the metal which has surged to ever higher records over the past week on concern over Indonesia supplies. In other metals, zinc was up at 3,203 usd a tonne against 3,200 usd at the close yesterday, lead was up at 1,910 usd against 1,900 usd, nickel was up at 44,100 usd against 43,400 usd while aluminium was up at 2,757 usd against 2,745 usd. |