Gold may gain in London as slower growth concern boosts demand
Wednesday, 16 June 2010
SEOUL, June 15 (Bloomberg): Gold may gain in London as concern that the global economic recovery may slow boosts demand for the precious metal as a means of protecting wealth.
German investor confidence plunged the most since October 2008 on concern that the sovereign debt crisis will undermine export prospects and crimp growth in Europe's largest economy. Moody's Investors Service Monday cut Greece's credit rating. Bullion is trading within 2.4 per cent of a record set last week.
"Gold is viewed more as a universal currency with its safe-haven, last-resort properties," said Bayram Dincer, a commodity analyst at LGT Capital Management in Pfaeffikon, Switzerland. Gold may be supported by the Greece downgrade, he said.
Gold for immediate delivery added $1.68, or 0.1 per cent, to $1,222.93 an ounce at 11:32 am local time. Bullion for August delivery was little changed at $1,224.20 on the Comex in New York.
The metal was little changed at $1,223 an ounce in the morning "fixing" in London, used by some mining companies to sell output, from $1,223.75 at Monday's afternoon fixing.
The Mannheim-based ZEW Centre for European Economic Research said Tuesday its index of investor and analyst expectations slumped to 28.7 in June from 45.8 in May. Economists in a Bloomberg News survey forecast a drop to 42.
Bullion has jumped 11 per cent this year, climbing to a record $1,252.11 an ounce on June 8, and is headed for a 10th straight annual advance, the longest run of gains since at least 1920. The metal has climbed amid speculation that debt-cutting measures by European nations will slow growth.
Moody's Monday cut Greece's credit rating to junk, citing "substantial" risks to the nation's economic growth from the austerity measures tied to a 110 billion-euro ($134 billion) aid package from the European Union and the International Monetary Fund.
German investor confidence plunged the most since October 2008 on concern that the sovereign debt crisis will undermine export prospects and crimp growth in Europe's largest economy. Moody's Investors Service Monday cut Greece's credit rating. Bullion is trading within 2.4 per cent of a record set last week.
"Gold is viewed more as a universal currency with its safe-haven, last-resort properties," said Bayram Dincer, a commodity analyst at LGT Capital Management in Pfaeffikon, Switzerland. Gold may be supported by the Greece downgrade, he said.
Gold for immediate delivery added $1.68, or 0.1 per cent, to $1,222.93 an ounce at 11:32 am local time. Bullion for August delivery was little changed at $1,224.20 on the Comex in New York.
The metal was little changed at $1,223 an ounce in the morning "fixing" in London, used by some mining companies to sell output, from $1,223.75 at Monday's afternoon fixing.
The Mannheim-based ZEW Centre for European Economic Research said Tuesday its index of investor and analyst expectations slumped to 28.7 in June from 45.8 in May. Economists in a Bloomberg News survey forecast a drop to 42.
Bullion has jumped 11 per cent this year, climbing to a record $1,252.11 an ounce on June 8, and is headed for a 10th straight annual advance, the longest run of gains since at least 1920. The metal has climbed amid speculation that debt-cutting measures by European nations will slow growth.
Moody's Monday cut Greece's credit rating to junk, citing "substantial" risks to the nation's economic growth from the austerity measures tied to a 110 billion-euro ($134 billion) aid package from the European Union and the International Monetary Fund.