Gold Rises for Third Day in New York as Investor Demand for Haven Expands

Gold prices rose, capping a third straight gain, as investors purchased bullion as a haven.

Holdings in global exchange-traded-funds backed by bullion increased for five straight days, data compiled on Aug. 17 shows. That’s the longest expansion streak since June 30. Gold reached a record $1,266.50 an ounce in June as investors sought a shield against financial turmoil and currency debasement.

“We’re seeing a lot of clients increase their allocation to gold,” said William Rhind, the head of U.S. sales and marketing for ETF Securities Ltd. in New York. “We’re starting to see the safe-haven trade emerge again as people are uncertain about where growth is heading.”

Gold futures for December delivery added $3.10, or 0.3 percent, to close at $1,231.40 at 1:43 p.m. on the Comex in New York.

Earlier, the price lost as much as 0.8 percent as the dollar climbed against the euro, curbing demand for the metal as an alternative investment.

“With a lack of meaningful direction in the dollar today, gold is in pause mode,” said Adam Klopfenstein, a senior market strategist at Lind-Waldock, a broker in Chicago.

Silver futures for September delivery fell 19.8 cents, or 1.1 percent, to $18.452 an ounce.

Platinum futures for October delivery dropped $10.10, or 0.7 percent, to $1,536.50 an ounce of the New York Mercantile Exchange. Palladium futures for September delivery lost $6.90, or 1.4 percent, to $490.40 an ounce.

To contact the reporters on this story: Millie Munshi in New York at mmunshi@bloomberg.net

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