Bloomberg News

Gold May Gain as Split in Crisis Talks Boosts Demand for Haven

October 20, 2011

Oct. 20 (Bloomberg) -- Gold may gain for the first time in four days as reports that France and Germany are split on ways to boost Europe’s rescue fund spurs demand for a haven.

Bullion for immediate delivery climbed as much as 0.3 percent to $1,645.45 an ounce, and traded at $1,642.70 at 8:03 a.m. in Singapore. December-delivery gold fell for a fourth day, dropping as much as 0.3 percent to $1,641.60 an ounce on the Comex in New York.

“Until this crisis is over, we believe gold will remain well-bid due to its utility as a safe haven and portfolio diversifier,” James Steel, an analyst at HSBC Securities USA Inc., wrote in a note e-mailed today.

A disagreement over the role of the European Central Bank comes ahead of a meeting in Brussels tomorrow where European policy makers try to find a solution to end the region’s debt crisis. Leaders are looking for ways to boost the 440 billion- euro ($605 billion) European Financial Stability Facility as the crisis threatens to tip the global economy into recession.

Cash silver gained 0.2 percent to $31.2325. Spot platinum fell 0.5 percent to $1,509.75 an ounce and palladium rose 0.7 percent to $608.25 an ounce.

--Editors: Jarrett Banks, Ovais Subhani

To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net


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