US gold climbs on euro zone fears, copper stumbles

NEW YORK: US gold futures vaulted higher Thursday as the dollar slid due to rising fears over the euro zone debt crisis while copper faltered due to worries weak economic growth will damage demand.

MARKETS

Gold fell as the dollar hit a 3-week high against the euro as concern escalated over the impact of the Greek debt crisis.

Copper slid due to the surging dollar, along with fears of weak economic growth and demand prospects from the US which hit investor sentiment.

Premiums for spot copper may jump by a quarter once the third-month arbitrage window opens between the London Metal Exchange and Shanghai, which could hasten deliveries of LME stocks in Asia to China.

Chinese steel consumption remained high in the first five months of 2011, with strong fixed asset investment helping to offset weaknesses in consumer demand.

Crude oil rebounded after the IEA forecast higher demand and reduced OPEC spare capacity.

World stocks fell to a 3-week low on worries Greece's debt crisis would ripple into other euro zone economies.

Copyright Reuters, 2011