Gold rose in London as European equity markets opened lower, buoying demand for the metal as an alternative investment. Platinum fell.
The Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, dropped as much as 1.8 per cent. The index has fallen 13 per cent since Lehman Brothers filed for bankruptcy on September 15. Gold has risen eight per cent in the same period.
"We are seeing a negative trend in stocks and flight to safety in gold," said Sagiv Peretz, a senior dealer at trading-system operator Finotec Trading. "As long as we have uncertainty in the markets, we will have a positive trend in gold." Gold for immediate delivery rose $9.10, or 1.1 per cent, to $845.80 an ounce as of 8.40am in London.
Among other metals for immediate delivery, silver fell one cent, or 0.1 per cent, to $10.95 an ounce, platinum dropped $27, or 2.6 per cent, to $1,000.50 an ounce and palladium rose $2, or one per cent, to $201.
Meanwhile, crude oil fell below $78 a barrel on scepticism a US Government plan to invest $250 billion (Dh917bn) in banks will be sufficient to bolster economic growth and spur fuel demand. Crude oil for November delivery fell as much as $1.18, or 1.5 per cent, to $77.45 on the Nymex.
