Gold Advances in London as European Debt Crisis Drives Demand

Gold rose for the first time in three days in London as concern about Europe’s debt crisis spurred investors to protect their wealth.

Fitch Ratings yesterday downgraded Portugal by one level and said the country’s economy faces a “deteriorating” outlook as the government struggles to contain the euro region’s fourth-largest budget deficit. Gold climbed to a record $1,431.25 an ounce on Dec. 7 amid mounting concern about the fiscal health of countries including Ireland, Spain and Greece.