CP: Gold gains as drop to six-week low spurs buying
LONDON -- Gold gained in London as the dollar halted its rally and the metal's slide to a six-week low attracted investors.
The dollar was little changed against the euro, amid speculation that a mee ting of European Union leaders starting Thursday will fail to make progress on a financial aid plan for Greece. Bullion slumped to US$1,085.30 an ounce Wednesday, the lowest price since Feb. 12, as the dollar rose to a 10-month high on Greece's budget crisis and a downgrade of Portugal's credit rating. Gold for immediate delivery added US$6.05, or 0.6 percent, to US$1,092.70 an ounce at 9:33 a.m. local time. Bullion for April delivery was 0.3 percent higher at US$1,092.40 on the Comex in New York.
Among metals for immediate delivery in London, silver rose 0.8 percent to US$16.71 an ounce. Palladium added 0.3 percent to US$446.50 an ounce and platinum rose 0.4 percent to US$1,585.25 an ounce.
“There's very good physical demand, especially out of the Far East, and people are taking advantage of the lower prices,” said Bernard Sin, head of currency and metals trading at MKS Finance SA, a bullion refiner in Geneva. The market is still “concerned” about Greece and Portugal, he said.
