Gold Advances as Deutsche Bank Concerns Stoke Demand for Haven

  • Silver advances 0.9 percent as sentiment lifts precious metals
  • Palladium is up 20 percent in third quarter, most since 2010

Gold gained on the final day of the quarter as rising investor anxiety over Deutsche Bank AG’s finances spurred a selloff in equities and helped to underpin demand for a haven.

Bullion for immediate delivery rose 0.5 percent to $1,326.34 an ounce by 11:27 a.m. in London, according to Bloomberg generic pricing. That’s the first gain in four days and pares the metal’s decline this week to 0.9 percent.

Traders are seeking haven assets amid increased concern over the health of the financial industry, with Bloomberg News reporting that 10 hedge funds that do business with Deutsche Bank have pared their exposure. Its shares fell to a record low, and European and Asian equities retreated. There’s heightened haven buying as anxiety grows over the German lender, Australia & New Zealand Banking Group Ltd. said in a note.

“Risk-off sentiment in Europe, as evidenced by the fall in European equities this morning and the retreat in the euro against the dollar, is supporting gold as a safe haven,” Jonathan Butler, a precious-metals strategist at Mitsubishi Corp., said by phone from London. “Concerns over the stability of the Eurozone’s financial sector seem to be supporting gold, as they have many times in the recent past.”

Bullion is still lower this week after a surge in U.S. consumer confidence bolstered the case for the Federal Reserve to raise rates this year. Prices also fell as Democratic nominee Hillary Clinton saw her odds of winning the presidency rise after the debate with Republican Donald Trump. Citigroup Inc. has said a Trump win in November could spur volatility in gold.

In other market news:

  • Holdings in exchange-traded funds backed by gold were little changed at 2,031.3 metric tons on Thursday, according to data compiled by Bloomberg.
  • Spot silver was up 0.9 percent at $19.2746 an ounce.
  • Platinum climbed 0.7 percent to $1,034.45 an ounce.
  • Palladium rallied 0.5 percent to $718.63 an ounce. The metal is up 20 percent this quarter, its biggest gain since 2010.

— With assistance by Eddie Van Der Walt

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