Gold holds near $1,060/oz

LONDON - Gold held above $1,060 (U.S.) an ounce in Europe on Tuesday as persistent weakness in the dollar fuelled buying of the precious metals as an alternative asset.

Platinum and palladium reached their highest in more than a year, buoyed by gold and supply concerns.

Spot gold was bid at $1,061.20 an ounce at 0906 GMT against $1,062.70 late in New York on Monday. U.S. gold futures for December delivery on the COMEX division of the New York Mercantile Exchange rose $3.90 to $1,062.00 an ounce.

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Among other precious metals.

Spot silver was at $17.68 an ounce against $17.78.

Platinum and palladium both rose to their highest in more than a year, however, with platinum hitting a 13-month high of $1,368 an ounce and palladium reaching a peak of $334, its firmest since August 2008.

Spot platinum was later at $1,357.50 an ounce against $1,355.50, while palladium was at $333 against $332.

Both metals benefited from strong underlying fundamentals, with concern persisting over the outlook for South African supply as the strong rand boosts producers' relative costs, and Russian palladium supply still lacklustre.

Palladium demand is also picking up in China, analysts said.

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Copper dips on demand concerns, earnings limit losses

* Copper takes a breather, aluminium inventories soar

* Corporate earnings boost equities, dollar dips


LONDON, Oct 20 (Reuters) - Copper eased on Tuesday, down
from one-month highs hit in the previous session as rising
inventories stoked short-term demand fears, but upbeat U.S.
corporate earnings lifted sentiment and helped limit losses.

By 0940 GMT, copper for three-month delivery on the
London Metal Exchange fell to $6,440 a tonne from $6,465 at the
close on Monday. The metal, used in power and construction,
touched a high of $6,510 on Monday.

LME inventories continued to rise, indicating demand has yet
to recover outside China. Latest data showed copper stocks rose
550 tonnes to near five-month highs above 357,000 tonnes.

"The inventories remain high," said Fairfax analyst Marc
Elliott. "The investment side is sustaining prices above the
levels of supply and demand."

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Other Metals

Aluminium , used in transport and packaging, rose $6
to $1,951. Giving an indication of future demand, an aluminium
industry-backed report said if automakers use more aluminium and
less steel in hybrid and electric-powered vehicles, they could
cut the cost to consumers by $3,000 per vehicle.

Nickel, Steel-making ingredient traded at $19,200 from
$19,275 while battery material lead was at $2,315 from
$2,288.

Zinc gained to $2,121.50 a tonne from $2,112 but
touched a high of $2,131.25 -- a level not seen since May 29.

Tin traded at $14,650 from $14,550.

Worries about short-term tin supplies have been fuelled by a
dominant position controlling more than 90 percent of LME stocks
and cash contracts.

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24 Hour Base Metals

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Gold & PGM Prices

Oct 20 2009 7:39AM NY Time dd Change Gold 1065.40 +0.18% Platinum 1363.00 +0.44% Palladium 334.00 +0.30% Rhodium 1600.00 +0.00%