By Debarati Roy and Nicholas Larkin - Nov 22, 2011 10:18 PM GMT+0700
Gold futures rebounded from the lowest in almost four weeks after mounting debt woes in the U.S. and Europe spurred demand for the metal as a store of value.
A U.S. congressional committee failed to reach agreement on reducing the budget deficit. Global equities have tumbled this month as Europe’s credit crisis escalated. Holdings in exchange- traded products backed by gold climbed to a record yesterday.
“The uncertainty around the budget-deficit talks is positive for gold in the long run,” Sterling Smith, an analyst at Country Hedging Inc. in St. Paul, Minnesota, said in a telephone interview. “We have seen an increase in physical interest.”
Gold futures for December delivery gained 1.1 percent to $1,696.30 an ounce at 10:16 a.m. on the Comex in New York. Yesterday, the metal touched $1,667.10, the lowest since Oct. 25.
Holdings in ETPs backed by physical metal climbed 2 metric tons yesterday to an all-time high of 2,341.94 tons, data compiled by Bloomberg show.
Silver futures for March delivery rose 2.6 percent to $32.005 an ounce on the Comex. Yesterday, the price slumped 4 percent.
To contact the reporters on this story: Debarati Roy in New York at droy5@bloomberg.net; Nicholas Larkin in London at nlarkin1@bloomberg.net
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
Posts
No comments:
Post a Comment