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Gold Climbs a 3rd Day as U.S., Europe Economic Concerns Drive Haven Demand
Sep 5,2011 10:07CST
industry news
Source:SMM
Gold climbed for a third day toward a record on concern economic growth in the U.S. is slowing and the sovereign-debt crisis in Europe is worsening, spurring demand for the precious metal as haven.

Sept. 5 (Bloomberg) -- Gold climbed for a third day toward a record on concern that economic growth in the U.S. is slowing and the sovereign-debt crisis in Europe is worsening, spurring demand for the precious metal as haven.

Immediate-delivery gold, which reached a record $1,913.50 on Aug. 23, traded 0.2 percent higher at $1,886.60 at 7:45 a.m. Singapore time. December-delivery bullion advanced 0.7 percent to $1,889.10 an ounce. The metal priced in euros and sterling jumped to all-time highs.

“Gold gets a boost from further deterioration in the Greek sovereign debt crisis followed by heavy investor buying in the wake of U.S. jobs data showing no growth in employment,” said James Steel, an analyst at HSBC Securities USA Inc.

No jobs were added in the U.S. last month, a Sept. 3 report showed, adding to signs the world’s largest economy is slowing down. The unemployment rate held at 9.1 percent, fueling speculation the Federal Reserve may take additional stimulus measures.

In Europe, European Central Bank President Jean-Claude Trichet said the Italian government must “fully implement” the budget measures announced to restore the country’s creditworthiness. This comes amid speculation European Union, International Monetary Fund and European Central Bank officials suspended talks on Greece’s loan review.

Cash platinum traded little changed at $1,886.50 an ounce, dropping below gold on concern a slowdown will trim demand for the metal used mainly in auto catalysts. Spot silver was little changed at $43.225 an ounce, while palladium rose 0.4 percent to $778 an ounce.

 

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