Gold falls slightly to settle at $1,808; copper hits 2011 low

The Chinese data also showed a 9 percent yearly rise in imports of palladium to five-month highs. The metal is used primarily in catalytic converters in gasoline-powered vehicles and China, home to the world’s largest car market, is a key source of demand.

Palladium [PAZ1 692.00 -20.85 (-2.92%) ] was last down 1.1 percent at $709.30 an ounce, while platinum [PLCV1 1764.40 -23.80 (-1.33%) ] was nearly flat at $1,781.70 an ounce.

Copper Sinks to New 2011 Low

Copper was also weak, reflecting growing demand worries and worries over the euro zone debt crisis.

Three-month copper on the London Metal Exchange slipped to its lowest level since November 2010 at $8,234.75 a ton, before recovering some lost ground to end at $8,300 a ton from Tuesday’s close of $8,309. (Get the latest copper futures prices here.)

The metal used in power and construction also fell to a new low since November 2010 at $8,234.75 a ton.

“To an extent metals are in a holding pattern, but I think prices are still grinding lower until you get more clarity on Europe. To some extent FOMC is a bit of a sideshow,” analyst Leon Westgate of Standard Bank said.

Against a backdrop of concerns regarding funding pressure and sovereign debt contagion, Greece late on Tuesday pledged to bring forward painful austerity measures. It convinced international lenders to return to Athens early next week for talks that it hopes will secure the aid it needs to avert bankruptcy.

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