By Pham-Duy Nguyen
Feb. 4 (Bloomberg) -- Gold rose for the first time in three days on demand for the precious metal as a store of value amid global financial turmoil. Silver also gained.
UBS AG said today gold will average $1,000 an ounce this year, up 43 percent from its previous forecast. Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, rose to a record 853.4 metric tons on Feb. 2.
“Worldwide, gold is seen as a safe place to be,” said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. “It’s one of the few assets that made money last year. Everybody wonders: Where should I go with my money this year? When you look around, gold is one of the few recipients.”
Gold futures for April delivery rose $10.20, or 1.1 percent, to $902.70 an ounce at 9:23 a.m. on the Comex division of the New York Mercantile Exchange. The price dropped 3.9 percent in the previous two days.
Silver futures for March delivery climbed 16 cents, or 1.3 percent, to $12.46 an ounce. The metal slumped 24 percent in 2008, while gold gained 5.5 percent.
To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.
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