Gold may gain in London on speculation lower prices are attracting physical buyers and as investors seek a protection of wealth from Europe’s debt crisis.

The metal has dropped 5 percent since Nov. 8 and fell to $1,667.03 an ounce on Nov. 21, the lowest price in almost four weeks. German Chancellor Angela Merkel said today joint euro bonds would send a “wrong signal,” damping optimism about a potential remedy for the region’s debt crisis.

“The physical demand out of Asia, particularly Vietnam and Thailand, is very healthy,” Bernard Sin, head of currency and metal trading at bullion refiner MKS Finance SA in Geneva, said by phone today. “We are cautiously bullish.”

Bullion for immediate delivery gained 0.2 percent to $1,696.32 an ounce by 5:05 p.m. in London. February-delivery futures were little changed at $1,699.70 an ounce on the Comex in New York, where floor trading is closed today for the Thanksgiving holiday.

Bullion is in the 11th year of a bull market and prices reached a record $1,921.15 an ounce on Sept. 6 as investors sought to diversify away from equities and some currencies amid debt crises and concerns about slowing economic growth. Assets held in exchange-traded products backed by the metal climbed to a record 2,350.8 metric tons yesterday, data compiled by Bloomberg show.

Silver for immediate delivery was 0.5 percent higher at $31.8925 an ounce after falling the most in almost a week yesterday. Platinum was down 0.5 percent at $1,540.50 an ounce and palladium fell 0.8 percent to $581.50 an ounce.