LONDON: Gold recovered early losses to firm in Europe on Wednesday, boosted by interest in bullion as a haven from risk, but remained off the previous session’s 11-day high as the euro gave up gains versus the dollar.
Spot gold was quoted at $860.20/862.20 an ounce at 0941 GMT against $855.20 late in New York on Tuesday. The precious metal hit a high of $865.80 on Tuesday as risk aversion prompted funds to buy the precious metal as a haven from risk. This interest is still supporting the precious metal, though a firm dollar is limiting gains.
Strength in the dollar versus the euro typically pressures gold, which is often bought as an alternative investment to the US currency. However, this factor is currently being outweighed by investment interest.
Gold looks likely to be supported by buying from risk-averse investors as the economic outlook remains murky, with more bad news expected to hurt equity markets. The world’s largest gold-backed ETF, New York’s SPDR Gold Trust, said its holdings rose one percent on Tuesday to breach the 800-tonne barrier for the first time ever.
Among other precious metals, silver climbed to $11.42/11.50 an ounce from $11.11 late in New York on Tuesday. Platinum was relatively steady at $932/937 an ounce from $937.50, while palladium was unchanged at $182/187 an ounce against $182. Both metals have steadied after posting dramatic losses on the back of falling demand from the automotive industry, which typically accounts for some 50 percent of platinum and palladium demand. reuters
