Gold Is Little Changed After Reaching Two-Week High on European-Debt Woes
Gold futures were little changed after climbing to the highest level in more than two weeks as Europe’s debt woes boosted demand for a haven.
Investors are shunning Europe’s highest-rated bonds after bailouts for Greece and Ireland failed to ease concern that the debt crisis will spread. The cost of insuring Portugese, Spanish and Italian bonds rose to records, and gold priced in euros reached an all-time high.
“Gold is swiftly becoming the next reservable currency,” said Dennis Gartman, an economist and editor of the Suffolk, Virginia Gartman Letter.
Gold futures for February delivery were little changed at $1,387.10 an ounce at 11:05 a.m. on the Comex in New York. Earlier, the price reached $1,398.30, the highest since Nov. 12. The metal reached a record $1,424.30 on Nov. 9.
Gold may average $1,500 next year and $1,600 in 2012, Anne- Laure Tremblay, a London-based analyst at BNP Paribas SA, said in a report.
Silver futures for March delivery gained 15.3 cents, or 0.5 percent, to $28.365 an ounce. Before today, the price jumped 67 percent this year, reaching a 30-year high of $29.34 on Nov. 9.
Palladium futures for March delivery rose $22, or 3.1 percent, to $725 an ounce on the New York Mercantile Exchange.
Platinum futures for January delivery rose $12.60, or 0.8 percent, to $1,679 an ounce.
To contact the editor responsible for this story: Steve Stroth at firstname.lastname@example.org
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.