Gold may advance on concerns about a Greek-debt default, increasing the appeal of the precious metal as an investment haven. Gold futures for August delivery in New York were little changed at $1,542.20 an ounce at 8:48 a.m. Singapore time. The price climbed 0.7 percent last week. Bullion for immediate delivery was also little changed at $1,541.50. Europe’s top economic policy makers are pushing Greece to pass laws to cut the deficit and sell state assets. Greek Prime Minister George Papandreou faces a confidence vote in his government today that may determine whether the nation becomes the first euro-area country to default. “Gold held its own overnight; there’s volatility there but any dip seems to be well-supported,” Jonathan Barratt, managing director at Commodity Broking Services Pty, said by phone from Sydney today. “It’s trading in a band of $1,555 an ounce on the topside and $1,515 on the low.” Gold prices may average 3 percent more in 2012 at $1,550 an ounce, driven by strong global investment and jewelry demand in developing economies, an Australian government agency said. The price may rise 23 percent to average $1,500 an ounce this year, up from a March 1 forecast of an 8 percent gain, the Australian Bureau of Agricultural and Resource Economics and Sciences said in a report today. The precious metal touched a record $1,577.57 on May 2 as escalating sovereign-debt woes and record-low U.S. borrowing costs increased the appeal of bullion as an alternative to currencies. Gold denominated in euros reached an all-time high on May 25. Silver for immediate-delivery fell 0.3 percent to $35.96 an ounce. Spot palladium rose 0.8 percent to $754 an ounce, while cash platinum gained 0.7 percent to $1,743.38 an ounce. To contact the reporter on this story: Jason Scott in Perth at jscott14@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Source