Gold May Advance on European Debt Optimism; ETP Holdings Climb to Record

Gold May Advance on European Debt Optimism; ETP Holdings Climb to Record

Gold may gain for a second day, rising alongside equities and the euro, on optimism that European leaders are making progress in efforts to contain the region’s debt crisis. Palladium rose to the highest in a month. Gold for immediate delivery was little changed at $1,730.45 an ounce at 8:09 a.m. in Singapore. Holdings in exchange‐traded products expanded to a record 2,358.206 metric tons yesterday, according to data compiled by Bloomberg. February‐delivery bullion rose 0.2 percent to $1,734.70 on the Comex in New York. “Gold and silver drifted higher as the U.S. dollar (DXY) eased,” Lachlan Shaw, an analyst at Commonwealth Bank of Australia, said in an e‐mail today. Trading is “thin” as investors wait for the European Union summit, he said. European officials are negotiating a bigger rescue effort to present at this week’s crisis summit in Brussels, including running two separate bailout funds simultaneously, the Financial Times reported yesterday, driving stocks and the euro higher. The Standard & Poor’s 500 Index climbed 0.1 percent to close at 1,258.47 at 4 p.m. in New York after drifting between gains and losses for most of the day. The euro was at $1.3409, rebounding from yesterday’s low of $1.3334. Spot palladium rose as much as 0.7 percent to $675 an
ounce, the highest price since Nov. 9, on speculation higher car sales will boost demand for the metal used in
autocatalysts. Cash silver dropped 0.4 percent to $32.625 an ounce and platinum was little changed at $1,523 an ounce

By Glenys Sim ‐ Dec 7, 2011 7:10 AM GMT+0700