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 TheBullionDesk.com 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.”
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