Gold gained for a third straight session in
New York as concerns that Europe’s debt woes may worsen spurred demand
for the metal as a haven investment.
Europe’s banks clashed with politicians on a
debt-relief plan for Greece, and a European Union document showed that
boosting the effectiveness of the region’s bailout fund will require
further talks. Federal Reserve Bank of New York President William C.
Dudley said the central bank may do more to hold down borrowing costs.
“Nobody really wants to go short on gold,”
Bernard Sin, the head of currency and metal trading at bullion refiner
MKS Finance SA in Geneva, said by telephone. “I don’t think Europe will
be out of the woods yet.’
Gold futures for December delivery gained 0.2
percent to $1,656.30 an ounce at 9:46 a.m. on the Comex in New York.
Prices advanced 2.4 percent in the previous two sessions.
“The overall strength in the commodities pack
is also helping gold,” said Frank McGhee, the head dealer at Integrated
Brokerage Services LLC in Chicago.
The Standard & Poor’s GSCI Index of 24 raw materials climbed as much as 1.3 percent, led by crude oil and natural gas.
Bullion is in the 11th year of a bull market
and futures reached a record $1,923.70 on Sept. 6 as investors sought to
diversify away from equities and some currencies. Before today, the
metal advanced 16 percent this year.
Europe’s leaders prepared to meet this week
in Brussels for the second summit in four days in a bid to carve out a
solution to the region’s debt crisis. They are seeking an agreement on
bolstering the region’s rescue fund, recapitalizing banks and providing
debt relief to Greece to avoid contagion spreading to Italy and Spain.
The Diwali religious festival this week in India, the world’s biggest
gold buyer, also may spur physical demand, MKS Finance’s Sin said.
Silver futures for December delivery fell 0.5 percent to $31.48 an ounce, after gaining in the previous two sessions.
