BLBG: Gold Advances for Second Day in London as Stocks Markets Climb
By Rachel Graham
Oct. 29 (Bloomberg) -- Gold rose for a second day in London as stock markets in Europe advanced, curbing investors' sales in the metal to raise cash. Silver also climbed.
Equities in Asia and Europe traded higher as lower financing costs signaled central bank efforts were unlocking credit markets. The MSCI World Index rose up to 7.5 percent yesterday.
``When stocks rally, crude oil rallies and gold follows,'' Robert Martin, chief executive officer of Dubai-based GTL Trading Ltd., which trades gold and currencies for 4,000 clients, said by phone from Dubai. ``The pressure on margin calls become less.''
Gold for immediate delivery added $3.89, or 0.5 percent, to $750.84 as of 8:38 a.m. in London. Futures for December climbed $10, or 1.4 percent, to $750.50 an ounce in electronic trading on the Comex division of the New York Mercantile Exchange.
``The recent movements in both the equity and currency markets suggest some risk appetite is beginning the return,'' James Moore, an analyst at TheBullionDesk.com wrote in a report today. ``Investors may look to further diversify their asset holdings, given recent events.''
Among other metals for immediate delivery, silver added 14.88 cents, or 1.6 percent, to $9.3488 and palladium rose $2.75, or 1.5 percent, to $184.25. Platinum fell $9.50, or 1.2 percent, to $801.50 an ounce.
To contact the reporter on this story: Rachel Graham in London at rgraham13@bloomberg.net
