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Does demand for gold bullion remain strong?

*Bloomberg, by Nicholas Larkin & Phoebe Sedgman, October 26, 2011

”Gold Climbs to One-Month High as European Debt-Crisis Concern Spurs Demand

Gold futures advanced above $1,700 an ounce to a one-month high as concerns about Europe’s debt crisis spurred demand for the metal as a protection of wealth.

European Union talks with banks on bondholder losses as part of a second Greek rescue package are deadlocked, an EU official said on condition of anonymity.  European leaders hold a summit today in a bid to reach agreement on measures to solve what U.S. Treasury Secretary Timothy F. Geithner called the ‘catastrophic risk’ posed by the turmoil.  Gold exchange-traded product holdings climbed to a one-month high yesterday.

‘The size of the debt issues are unlikely to go away regardless of what policy makers decide,’ analysts at in London wrote today in a report.  ‘Given this uncertainty we are not at all surprised gold is attracting fresh safe-haven buying.’

Gold for December delivery gained as much as $25.20, or 1.5 percent, to $1,725.60 an ounce, the highest price since Sept. 23, and was at $1,719.90 by 12:02 p.m. on the Comex in New York.  Immediate-delivery gold was 0.9 percent higher at $1,720.73.

Bullion is in the 11th year of a bull market and futures reached a record $1,923.70 an ounce on Sept. 6 as investors sought to diversify away from equities and some currencies.  The metal is up 21 percent this year.”

*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

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