Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Gold Seen Gaining as Europe Debt Crisis Increases Demand

May 30 (Bloomberg) -- Gold futures rose the most in more than a week on demand for a haven amid signs that Europe’s debt crisis is deepening.

The cost of insuring against default on Spanish sovereign bonds rose to a record as the nation struggles to rescue its ailing banks. The European Union said that Italy’s high government debt and sluggish economy make the country more vulnerable to the region’s financial crisis. Global equities tumbled, and the euro dropped against the dollar.

“We are seeing some safe-haven buying in gold,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said in a telephone interview. “People are looking at something tangible like gold to store their wealth.”

Gold futures for August delivery rose 0.9 percent to settle at $1,565.70 an ounce at 1:44 p.m. on the Comex in New York, the biggest gain for a most-active contract since May 18.

Silver futures for July delivery climbed 0.7 percent to $27.983 an ounce on the Comex, the third gain in four sessions.

On the New York Mercantile Exchange, platinum futures for July delivery fell 1.9 percent to $1,401.20 an ounce, the first decline in four sessions. Palladium futures for September delivery rose 0.1 percent to $606.50 an ounce, a third straight increase.

To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.