July 19 (Bloomberg) -- Gold may rise for an 11th day after touching a record in the longest winning streak since at least 1975 as debt concerns in Europe and the U.S. spur demand for a protection of wealth.
Bullion held in exchange-traded products yesterday climbed 0.9 percent to 2,120.5 metric tons, the most ever, data compiled by Bloomberg show. European government leaders plan to gather in Brussels this week to break a deadlock over a new Greek rescue that has spooked investors. President Barack Obama vowed to veto a Republican proposal to impose mandatory budget cuts as U.S. officials struggle to reach agreement on how to avoid a default.
“Europe’s debt is a time bomb and while the U.S. will eventually settle the current debt issue, there still exists a lot of uncertainties in that market,” Hou Xinqiang, an analyst at Jinrui Futures Co., said by phone from Shenzhen, China. “Gold’s safe-haven properties have been in play recently and ever since the global recession in 2008, it has become a vital part of most people’s investment portfolio.”
Gold for August delivery gained as much as $8.30, or 0.5 percent, to $1,610.70 an ounce and traded at $1,603 by 8:26 a.m. on the Comex in New York. Prices are up for an 11th day, the longest rally since at least January 1975. Immediate-delivery gold was 0.1 percent lower at $1,602.75 in London after reaching a record $1,610.10.
Gold is up 13 percent this year, heading for an 11th straight annual gain, the longest winning streak since at least 1920 in London. The MSCI All-Country World Index of equities gained 1.4 percent in 2011, the Standard & Poor’s GSCI Index of 24 commodities is up 9.8 percent and Treasuries returned 3.5 percent, according to a Bank of America Merrill Lynch index.
--Editors: John Deane, Nicholas Larkin
To contact the reporters on this story: Nicholas Larkin in London at firstname.lastname@example.org; Glenys Sim in Singapore at email@example.com
To contact the editor responsible for this story: Claudia Carpenter at firstname.lastname@example.org