Nov. 18 (Bloomberg) -- Gold futures rose for the first time in three days as Europe’s debt woes spurred demand for the metal as a store of value. Silver also climbed.
European Central Bank President Mario Draghi pushed back against politicians and investors asking him to do more to stem the region’s fiscal crisis. Gold reached a record $1,923.70 an ounce on Sept. 6 as investors sought alternatives to slumping equities and some currencies.
“Europe is not out of the danger zone,” Bernard Sin, the head of currency and metal trading at bullion refiner MKS Finance SA in Geneva, said in a telephone interview. “Physical demand has slowed down, but gold is still a safe haven.”
Gold futures for December delivery rose 0.3 percent to settle at $1,725.10 at 1:46 p.m. on the Comex in New York. The metal slumped 3.5 percent this week, partly on sales to cover losses in other markets. The price has gained 28 percent in the past year.
“We see people flocking in every time there is a price dip,” James Cordier, the founder of Optionsellers.com in Tampa, Florida, said in a telephone interview.
Silver futures for December delivery gained 2.9 percent to $32.417 an ounce in New York. This week, the metal tumbled 6.5 percent, the most since late September. The price has climbed 21 percent in the past 12 months.
On the New York Mercantile Exchange, palladium futures for December delivery gained 0.2 percent to $605.15 an ounce. Platinum futures for January delivery rose 0.5 percent to $1,588.70 an ounce.
--With assistance from Jeff Black and Jana Randow in Frankfurt. Editors: Patrick McKiernan, Millie Munshi
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