Gold, Little Changed, May Gain for Sixth Session on European Debt Crisis
Gold Declines for First Day in Seven
Haruyoshi Yamaguchi/Bloomberg
Immediate-delivery gold fell $9.35, or 0.6 percent, to $1,544.13 an ounce by 10:06 a.m. in London.
Immediate-delivery gold fell $9.35, or 0.6 percent, to $1,544.13 an ounce by 10:06 a.m. in London. Photographer: Haruyoshi Yamaguchi/Bloomberg
Gold futures, little changed in New York, may rise for the sixth straight session on mounting demand for a haven amid Europe’s escalating debt crisis.
The euro fell against the dollar after a meeting of European Union finance ministers failed to defuse the region’s escalating fiscal woes. Gold priced in euros and pounds rose to records.
“With the currency volatility and the debt-contagion risk in Europe, investors are gravitating toward something tangible like gold,” said Adam Klopfenstein, a senior strategist at Lind-Waldock, a broker in Chicago.
Gold futures for August delivery rose 50 cents to $1,549.70 an ounce at 10:16 a.m. on the Comex in New York. The metal gained 4.5 percent in the previous five sessions. On May 2, the price reached a record $1,577.40.
Dennis Gartman, the economist and editor of the Suffolk, Virginia-based Gartman Letter, said he is cutting his euro- denominated gold holdings by as much as 50 percent because “too many people have joined the trade.” He said he remains “quite bullish” on the metal in the long term.
Gold will trade above $1,600 in the third quarter and outperform silver, palladium and platinum, Edel Tully, a London- based analyst at UBS AG, said in a report dated yesterday. UBS cut its 2011 silver forecast to $36 an ounce from $40, lowered its palladium outlook to $800 an ounce from $825 and reduced its platinum estimate to $1,825 an ounce from $1,900.
Silver futures for September delivery dropped 46.8 cents, or 1.3 percent, to $35.23 an ounce on the Comex. Palladium futures for September delivery slipped $7.50, or 1 percent, to $759.95 an ounce on the New York Mercantile Exchange. Platinum futures for October delivery fell $1.30 to $1,727 an ounce.
To contact the reporters on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net; Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.
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