Gold rose for a second day in New York on speculation that Europe’s sovereign-debt crisis will worsen, boosting demand for bullion as a haven.
The euro headed for a weekly loss as Group of 20 leaders prepared to meet this weekend in Toronto to discuss Europe’s financial woes. The cost of protecting Greece’s debt from default rose to a record. Gold reached an all-time high of $1,266.50 U.S. an ounce on June 21.
Gold futures for delivery in August rose $9 U.S., or 0.7%, to $1,254.90 U.S. at 10:50 a.m. on the Comex in New York, narrowing the first weekly loss since mid-May. Earlier, the price touched $1,258 U.S., the highest level in four days.
Gold has risen 14% in 2010, after posting nine annual gains, as investors sought an alternative to holding currencies. The metal reached records this month in euros, sterling and Swiss francs.
This week, the Federal Reserve kept the U.S. benchmark interest rate between zero and 0.25%, where it’s been since December 2008.
G-20 leaders will meet in Toronto tomorrow and June 27 to discuss policies aimed at addressing Europe’s crisis, spurring global growth and overhauling financial regulation. Credit-default swaps on Greece rose to an all-time high today, according to CMA DataVision. European equities slipped for a fourth day.
Silver futures for September delivery gained 14.4 cents, or 0.8%, to $18.92 U.S. an ounce on the Comex. Platinum futures for October delivery slipped 20 cents to $1,568 U.S. an ounce on the New York Mercantile Exchange. Palladium futures for September delivery fell 35 cents to $469.65 U.S. an ounce.
Related Stories
