June 17 (Bloomberg) -- Gold may gain for a fourth day in New York as concern about Europe’s debt crisis spurs demand for a protection of wealth.
Chancellor Angela Merkel signaled a willingness to compromise on German demands that bondholders shoulder a “substantial” share of a Greek rescue, saying she’ll work with the European Central Bank to resolve the crisis. Gold is trading 3.1 percent below its record reached last month.
“The market remains very jittery and there is still far too much uncertainty over Greece,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said today in a report. “Global risk sentiment is still sour and bullion could wee rally to May highs given a renewed flight to safety should matters worsen.”
Gold for August delivery fell $1.90, or 0.1 percent, to $1,528 an ounce by 8:15 a.m. on the Comex in New York. The metal is down 0.1 percent this week. Immediate-delivery gold was 0.2 percent lower at $1,527.40 in London.
Bullion rose to $1,526.25 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from $1,523.25 at yesterday’s afternoon fixing. The metal pared some of its losses after the euro rebounded against the dollar. Gold typically moves counter to the greenback.
A Greek default is “almost certain” and could help drive the U.S. economy into recession, Former Federal Reserve Chairman Alan Greenspan said in an interview yesterday with Charlie Rose in New York.
Greek Debt Crisis
Gold is up 7.5 percent in 2011 after climbing the past 10 years, the longest run of gains in at least nine decades in London. Europe’s debt crisis helped bullion futures reach a record $1,577.40 on May 2. Fifteen of 23 traders, investors and analysts surveyed by Bloomberg said gold will rise next week. Five expect lower prices and three were neutral.
The dip may be a good buying opportunity as the Greek debt crisis “shows no signs of ending,” said Hwang Il Doo, a Seoul- based senior trader at KEB Futures Co.
Silver for July delivery declined 0.3 percent to $35.46 an ounce in New York. Palladium for September delivery fell 1.1 percent to $755.40 an ounce, after dropping to a three-week low of $743.55. Platinum for July delivery was down 0.4 percent at $1,754.40 an ounce. It fell to as low as $1,745.70, the lowest level since May 23.
--With assistance from Kyoungwha Kim in Singapore. Editor: John Deane
To contact the reporters on this story: Nicholas Larkin in London at firstname.lastname@example.org
To contact the editor responsible for this story: Claudia Carpenter at email@example.com