Gold may rise on Middle East unrest and European debt concern
Azerbaijan, Baku, April 1 / Trend /
Gold may gain in London, extending the longest streak of quarterly gains in more than three decades, as fighting in Libya and concerns about European debt spur demand for an alternative investment, Bloomberg reported.
Gold reached a record $1,447.82 an ounce on March 24 as fighting in Libya, the Japanese nuclear crisis and concerns about European debt boosted demand.
Gold is supported "on the back of expectations that the military intervention in Libya will prove to be a prolonged affair, coupled with the renewed concerns over the sovereign debt problems in Europe," Marc Elliott, an analyst at Fairfax IS in London, said in a report.
Immediate-delivery bullion rose $1.85, or 0.1 percent, to $1,434.15 an ounce by 9:41 a.m. in London. Prices gained 0.8 percent this year through March and climbed the past 10 quarters, the best run of gains since 1979. Gold for June delivery was 0.3 percent lower at $1,435.20 an ounce on the Comex in New York.
Uncertainty surrounding Libya and European sovereign risk, including Ireland, "encouraged gold safe-haven buying," Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd., wrote in a report today.