Nov. 15 (Bloomberg) -- Gold futures gained for the second time in three sessions as investors bought precious metals to protect against signs of a widening European debt crisis.
Costs to insure Italian, Spanish, Belgian and French bonds rose to records, while Spain and Belgium sold less than the maximum target of bills today as financing costs increased. Gold touched a record $1,923.70 an ounce on Sept. 6 as investors sought to diversify away from equities and some currencies.
“There is a revisit to the contagion concerns of Europe right now,” Michael Guido, a director of hedge-fund sales at Macquarie Group Ltd., said by telephone from Houston.
Gold futures for December delivery rose 0.2 percent to settle at $1,782.20 an ounce at 1:44 p.m. on the Comex in New York. The precious metal has gained 25 percent this year.
“Global financial markets are facing a key pivotal point with further escalation of the European debt crisis putting at risk the growing stabilization of global growth,” Suki Cooper, a Barclays Capital analyst in New York, said today in a report. “Macro uncertainty continues to fuel investor interest in gold.”
Gold will probably rise to $1,900 before the end of the year, Bernard Sin, the head of currency and metal trading at bullion refiner MKS Finance SA in Geneva, said by e-mail today.
Silver futures for December delivery gained 1.3 percent to $34.456 an ounce in New York. The metal has advanced 11 percent this year.
On the New York Mercantile Exchange, platinum futures for January delivery dropped 0.1 percent to $1,642.70 an ounce, declining for the second straight day. Palladium futures for December delivery climbed 0.4 percent to $667.05 an ounce.
--With assistance from Yi Tian in New York. Editors: Millie Munshi, Steve Stroth
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