US and Canadian listed gold producer look set to benefit from higher gold prices today, which have risen over the weekend and are currently climbing higher, now at around the US$1,227 per ounce mark. Gold has benefited from wider concerns over the European debt crisis and disappointing manufacturing data from China today. Gold futures gained impetus this morning after the European Central Bank (ECB) warned that Europe’s banks could get hit by up to €195 billion in bad loan write-offs this year, and suffer yet more losses in 2011. The news sent Euro to a four year low against the US dollar, and pushed European markets deep into the red. By 1pm London time, the FTSE 100 was down more than 2%, while futures in the United States suggested the Dow Jones would open at least 1% lower. Adding to the safe haven demand for gold was today’s HSBC China Manufacturing PMI (Purchasing Managers Index) report, which suggested manufacturing activity in China fell last month. Gold is traditionally seen as an alternative investment to the US dollar and usually moves inversely to the greenback and in tandem with the euro. However, gold has increasingly been used as a hedge against risks associated with recent volatility in equity and currency markets. Other precious metals benefited less, with silver down slightly to US$18.42/oz and platinum falling to US$1,540/oz. In London, Randgold Resources (LON:RRS, NYSE:GOLD) climbed 0.75% to 603 pence, while African Barrick Gold (LON:ABG) moved slightly lower, down 0.3% to 618 pence.

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