Gold, little changed, may climb for a second day after Moody’s Investors Service warned that Portugal’s credit rating may be cut, spurring haven demand. Gold for immediate delivery rose as much as 0.3 per cent to $US1178.30 an ounce and was recently at $US1175.88 in Singapore. The euro traded near its weakest level in more than a year versus the dollar. ''We’re still bullish on gold,'' said Hwang Il Doo, a trader with KEB Futures. ''The turmoil in Europe is unnerving investors and fanning flight-to-quality sentiment.'' Investors seek to shield their wealth against currency debasement and inflation as bullion heads for its tenth consecutive year of gains. Gold holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, increased 7 metric tons to a record 1166 tons yesterday, according to figures on the company’s website. Asian stocks slumped on concern the Greek deficit crisis will spread in Europe and hurt the global economic recovery. Moody’s placed its Aa2 rating for Portugal on review for a possible downgrade, a process that will conclude within three months, the company said in a statement. Portugal has held the third-highest Moody’s investment grade since 1998. ''We like owning gold and expect further upside as sovereign risks intensify and real rates remain anchored,'' Morgan Stanley’s Hussein Allidina wrote in an e-mailed report yesterday. ''Should the dollar continue to perform on sovereign concern, gold should continue to shine.'' Silver increased 0.7 per cent to $US17.59 an ounce, platinum added 1.3 per cent to $US1669.50 an ounce and palladium gained 1.6 per cent to $US512.50 an ounce.

Source