Gold ex­tends gain from 1-month low as Greece spurs haven de­mand

The Pak Banker - - INTERNATIONAL BUSINESS/SPORTS -

Gold rose for a sec­ond day, ex­tend­ing gains from a one-month low, as Greece's po­lit­i­cal cri­sis spurred de­mand for a haven. Sil­ver climbed. Euro­pean pol­icy mak­ers are striv­ing to fend off a re­turn of the re­gion's debt cri­sis. Greece has be­gun an elec­tion cam­paign that Prime Min­is­ter An­to­nis Sa­ma­ras said will de­ter­mine the coun­try's euro mem­ber­ship. Sa­ma­ras used a Jan. 2 speech to warn that vic­tory for the main op­po­si­tion Syriza party would cause de­fault and Greece's exit from the 19-mem­ber euro re­gion. Gold rose for the first time in four months in De­cem­ber as slow­ing eco­nomic growth out­side the U.S prompts gov­ern­ments to boost stim­u­lus as the Fed­eral Re­serve moves closer to rais­ing in­ter­est rates.

"Greece prob­a­bly doesn't have the po­ten­tial to cause a sys­temic cri­sis as it did a few years ago, but if you're short gold you prob­a­bly want to cover," Robin Bhar, an an­a­lyst at So­ci­ete Gen­erale SA in London, said by phone. "It might pay to go long, on the per­haps neg­a­tive sound bites com­ing out of Greece." Bul­lion for im­me­di­ate de­liv­ery rose as much as 0.8 per­cent to $1,197.97 an ounce and traded at $1,195.48 by 9:48 a.m. in London, ac­cord­ing to Bloomberg generic pric­ing. It reached $1,168.34 on Jan. 2, the low­est since Dec. 1. Gold for Fe­bru­ary de­liv­ery gained 0.8 per­cent to $1,195.30 on the Comex in New York. Fu­tures trad­ing vol­ume were about the av­er­age for the past 100 days for this time of day, ac­cord­ing to data com­piled by Bloomberg. The euro fell to the weak­est level in almost nine years ver­sus the dol­lar amid spec­u­la­tion the Euro­pean Cen­tral Bank is mov­ing closer to large-scale sov­er­eign-bond pur­chases. A weaker euro has helped gold priced in the cur­rency to climb to the high­est since Septem­ber 2013. Sil­ver for im­me­di­ate de­liv­ery in­creased as much as 2.3 per­cent to $16.1065 an ounce in London and last traded at $16.0728. Plat­inum rose 0.5 per­cent to $1,208 an ounce. Pal­la­dium added 0.4 per­cent to $798.25 an ounce after fall­ing the pre­vi­ous five days in the long­est run of losses since July.

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