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Gold Wobbles, Base Metals Rise On Weak Dollar

by Amwal Al Ghad English

Gold prices hovered around the flat line during European trading hours on Wednesday, while the broader metals complex found support in a weaker dollar.

Gold for December delivery  slipped 20 cents, or less than 0.1%, to $1,724.60 an ounce.

The decline built on a $6.10 loss from Tuesday, when worries over Greece’s next bailout installation sent the euro lower against the dollar, pressuring dollar-denominated commodities.

A weaker dollar, however, helped curb losses for gold in Wednesday’s trade, as the ICE dollar index , which measures the greenback against a basket of six rival currencies, fell to 80.996 from 81.097 in late trade the prior day.

A weaker dollar makes commodities priced in the U.S. currency more appealing to other currencies holders.

Other financial markets showed diverging trends, with U.S. stock futures pointing to a higher open on Wall Street, while bourses declined in Europe.

Other metals eked out gains, with copper for December delivery  up 0.4% to $3.48 a pound and palladium for the same month  0.5% higher at $639.95 an ounce.

December silver  inched 1 cent higher to $32.49 an ounce.

Platinum for January delivery  rose 0.2% to $1.588.90 an ounce. Johnson Matthey’s Platinum 2012 Interim Review said on Tuesday that the platinum market likely will see a deficit of 400,000 ounces due partly to recent mining strikes in South Africa.

Marketwatch

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