June 12, 2012
Gold futures rose for the second straight session on renewed concern that the European debt crisis will spur demand for the metal as a haven.
Spain requested as much as 100 billion euros ($US125 billion) in emergency loans to shore up its banking system. Greece is scheduled to hold elections on June 17 after a vote last month failed to produce a governing majority. The Standard & Poor's GSCI Spot Index of 24 raw materials fell for the third straight session.
“We are seeing some safe-haven bids coming in as people are worried that the crisis is getting worse,” Sterling Smith, a commodity market analyst at Citigroup Inc.'s institutional client group, said in a telephone interview from Chicago. “People are looking at alternative investments besides the dollar, and we are seeing some technical buying.”
Gold futures for August delivery gained 0.3 per cent to settle at $US1,596.80 an ounce at 1:51 p.m. on the Comex in New York. Earlier, the metal fell as much as 0.5 per cent. The price gained 0.2 per cent on June 8.
Silver futures for July delivery advanced 0.5 per cent to $US28.616 an ounce.
On the New York Mercantile Exchange, platinum futures for July delivery gained 1.7 per cent to $US1,449.30 an ounce. Palladium futures for September delivery rose 2.1 per cent to $US625.15 an ounce.