Gold may extend rally
Tuesday, 18 May 2010
LONDON, May 17 (Bloomberg): Gold, little changed near a record in London, may climb as investors seek a haven asset on concern that Europe's debt crisis will sap the region's economic recovery and weaken its 16-nation currency.
Bullion climbed to within 0.6 per cent of a record set last week. The euro declined to the lowest level in more than four years against the dollar before euro-area finance ministers meet in Brussels today. Holdings in the world's biggest gold-backed exchange-traded fund climbed to an all-time high, as did the price of bullion in euros, pounds and Swiss francs.
"Investors are concerned about the effects of debt contagion and as a result will continue to diversify towards safe-haven assets," James Moore, an analyst at TheBullionDesk.com in London, said in report.
Bullion climbed to within 0.6 per cent of a record set last week. The euro declined to the lowest level in more than four years against the dollar before euro-area finance ministers meet in Brussels today. Holdings in the world's biggest gold-backed exchange-traded fund climbed to an all-time high, as did the price of bullion in euros, pounds and Swiss francs.
"Investors are concerned about the effects of debt contagion and as a result will continue to diversify towards safe-haven assets," James Moore, an analyst at TheBullionDesk.com in London, said in report.