Gold, silver, palladium and platinum rallied from the biggest weekly drop since May as concerns that Europe’s sovereign-debt crisis may worsen spurred demand for a haven.
Bullion for immediate delivery climbed as much as 0.5 percent to $1,376.20 an ounce before trading at $1,374.38 at 4:18 p.m. in Seoul. The price lost 3.6 percent last week, the most since May 21, on speculation that the U.S. economy’s recovery will erode demand for the metal. The February-delivery contract increased 0.4 percent to $1,374.10 an ounce on the Comex in New York.
Spot gold advanced 30 percent in 2010 and climbed to a record $1,431.25 an ounce last month on concern that purchases of assets by governments to stimulate their economies would potentially debase the value of currencies.
If talks of problems within Europe continue, it is possible more safe-haven buying to continue.
Silver for immediate delivery gained as much as 1.3 percent to $29.0462 an ounce, the biggest intraday increase since Dec. 31, and last traded at $28.8850. The metal last week tumbled 7.3 percent, the biggest drop since May. Demand for silver in India, where imports of the metal surged more than sixfold in the first half of 2010, is increasing as investors seek an alternative to higher-priced gold, according to higher-priced gold. Demand probably climbed at least 20 percent to 30 percent in the past six months. India is the world’s biggest consumer of gold.
Immediate-delivery palladium jumped as much as 1.7 percent to $764 an ounce, the biggest gain since Dec. 31, and last traded at $759.50 an ounce. The price lost 6.3 percent last week, the biggest decline since July. Cash platinum was 0.7 percent higher at $1,744.75 an ounce after dropping 2.1 percent last week.
