Gold rose to a near record in New York, capping the third straight week of gains, as Europe’s fiscal crisis spurred demand for the metal as a haven. Silver jumped the most since November.
The MSCI World Index of equities dropped to a three-month low on speculation that Europe’s debt crisis will spread. Gold advanced to as high as $1,214.90 U.S. an ounce, 1% below the Dec. 3 record, after the Dow Jones Industrial Average yesterday had the biggest intraday loss since the market crash of 1987.
Gold futures for June delivery rose $13.10 U.S., or 1.1%, to $1,210.40 U.S. an ounce on the Comex in New York, for a 2.5% increase this week and a 10% advance for this year. The all-time high is $1,227.50 U.S.
The Group of Seven is holding a conference call today to discuss Greece’s debt risks following the plunge in global equities.
The Standard & Poor’s 500 Index dropped as much as 3% today, and the bonds of debt-laden nations in Europe tumbled.
The euro rose as much as 1.4% against the dollar and fell as much as 0.3%. The 16-nation currency tumbled 5.1% in the previous four sessions.
Gold priced in U.K. pounds and Swiss francs climbed to records today. The metal denominated in euros reached an all-time high yesterday.
Assets in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, yesterday jumped 19.78 metric tons to a record 1,185.79 tons.
Demand for gold bars and coins was "exceptionally strong" yesterday, notably in Germany this week, UBS AG said in a report.
Some investors purchased silver because gold is too expensive, analysts said.
Silver futures for July delivery rose 93.6 cents U.S., or 5.3%, to $18.451 U.S. an ounce, the biggest gain Nov. 16. Today’s rise helped silver narrow its loss for the week to 0.5%.
Platinum futures for July delivery dropped 70 cents U.S. to $1,665.80 U.S. an ounce on the New York Mercantile Exchange, narrowing the week’s loss to 4.5%. Earlier, the metal fell as much as 1.3%.
Palladium futures for June delivery fell $3.90 U.S., or 0.8%, to $510.20 U.S. an ounce, capping an 8.2% loss for the week. It was the biggest weekly decline since early March.
