Gold edges below $990

LONDON - Gold prices slipped below $990 (U.S.) an ounce in Europe on Thursday, giving up earlier gains, as the dollar index turned higher, denting interest in the precious metal as an alternative asset.

Traders say they are waiting to see whether the gains that took the metal above $1,000 an ounce for only the third time in history on Tuesday can be sustained. If the metal seems vulnerable at higher levels, selling is likely to gain momentum.

Spot gold eased to $988.30 an ounce at 0940 GMT against $991.15 late in New York on Wednesday. U.S. gold futures for December delivery on the COMEX division of the New York Mercantile Exchange fell $6.80 to $990.40 an ounce.

Oil

Crude oil prices climbed back above $72 a barrel on Thursday, further supporting gold, which is often bought as a hedge against oil-led inflation.

Oil is benefiting from a rise in stock markets, dollar weakness, and soothing words from the OPEC producer group. On the wider markets, world stocks and European equities rallied to 11-month highs, building on recent gains.

PMs

Among other precious metals, silver was flat at $16.27, platinum was at $1,273.50 against $1,276, while palladium was at $289 against $290.50.

LONDON, Sept 9 (Reuters) - Copper drifted lower on Wednesday
as the market worried that prices had risen higher than the
fundamentals justify, but expectations of stronger demand in the
longer term and a weaker dollar limited the fall.

Copper for three-month delivery on the London Metal
Exchange was at $6,367 a tonne by 1448 GMT, versus $6,480 at the
close on Tuesday and compared with a session low at $6,410.

Aluminium was down at $1,875 from $1,895. LME stocks
of the metal, used in transport and packaging, slipped 2,150
tonnes to remain near record levels above 4.5 million tonnes.

Nickel, steel making ingredient was unchanged at
$18,050 a tonne, while battery material lead was traded
at $2,452 from $2,455.

Zinc was down at $1,965 from $1,980 a tonne and tin
edged lower to trade at $14,700 from $14,880.

	24 Hour Base Metals