Gold gains in London on increasing commodities, haven demand
Tuesday, 15 June 2010
SINGAPORE, June 14 (Bloomberg): Gold rose for a second day in London on increasing demand for commodities and on speculation that demand for bullion as a haven investment will continue.
All six main industrial metals on the London Metal Exchange gained Monday, while crude oil futures rose in New York on speculation growth in the US economy will boost demand. Gold reached a record $1,252.11 an ounce on June 8 and climbed seven of the previous eight weeks as investors sought the perceived safety of bullion amid Europe's sovereign debt crisis.
Higher commodity prices "provide an additional excuse to get involved" in gold, said Afshin Nabavi, a senior vice president at bullion refiner MKS Finance SA in Geneva. "A lot of people were a bit surprised that gold held so well last week. It makes the market healthier and it's a positive sign."
Gold for immediate delivery added $5.15, or 0.4 per cent, to $1,231.85 an ounce at 9:34 am local time. The metal rose 0.6 per cent last week. Bullion for August delivery was 0.3 per cent higher at $1,233.40 on the Comex in New York.
Gold has climbed 12 per cent this year as the euro tumbled 15 per cent against the dollar on concern that the region's fiscal crisis will hamper a global economic recovery. Bullion is headed for its 10th annual advance, the longest winning streak since at least 1920.
"There is still so much money looking for safer investments, with growing interest in gold due to the prospect of higher prices," said Hwang Il Doo, a senior trader with KEB Futures Co "I expect gold to resume its rally to a record."
Europe's sovereign debt crisis has created an environment in which investors are dwelling on negative developments even when data show economic recovery, the Bank for International Settlements said in its quarterly report Sunday.
Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, increased 15 per cent this year. Assets were unchanged at a record 1,306.14 metric tonnes on June 11, according to the company's website.
Silver for immediate delivery in London increased 1 per cent to $18.4375 an ounce. Platinum gained 0.9 per cent to $1,555 an ounce and palladium climbed 2 per cent to $457.25 an ounce.
All six main industrial metals on the London Metal Exchange gained Monday, while crude oil futures rose in New York on speculation growth in the US economy will boost demand. Gold reached a record $1,252.11 an ounce on June 8 and climbed seven of the previous eight weeks as investors sought the perceived safety of bullion amid Europe's sovereign debt crisis.
Higher commodity prices "provide an additional excuse to get involved" in gold, said Afshin Nabavi, a senior vice president at bullion refiner MKS Finance SA in Geneva. "A lot of people were a bit surprised that gold held so well last week. It makes the market healthier and it's a positive sign."
Gold for immediate delivery added $5.15, or 0.4 per cent, to $1,231.85 an ounce at 9:34 am local time. The metal rose 0.6 per cent last week. Bullion for August delivery was 0.3 per cent higher at $1,233.40 on the Comex in New York.
Gold has climbed 12 per cent this year as the euro tumbled 15 per cent against the dollar on concern that the region's fiscal crisis will hamper a global economic recovery. Bullion is headed for its 10th annual advance, the longest winning streak since at least 1920.
"There is still so much money looking for safer investments, with growing interest in gold due to the prospect of higher prices," said Hwang Il Doo, a senior trader with KEB Futures Co "I expect gold to resume its rally to a record."
Europe's sovereign debt crisis has created an environment in which investors are dwelling on negative developments even when data show economic recovery, the Bank for International Settlements said in its quarterly report Sunday.
Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, increased 15 per cent this year. Assets were unchanged at a record 1,306.14 metric tonnes on June 11, according to the company's website.
Silver for immediate delivery in London increased 1 per cent to $18.4375 an ounce. Platinum gained 0.9 per cent to $1,555 an ounce and palladium climbed 2 per cent to $457.25 an ounce.