Gold gained for the first time in four days in London as concern about Greece’s debt crisis spurred demand for the metal as a protection of wealth. European Central Bank Executive Board member Juergen Stark said in an interview with Die Welt newspaper that he doesn’t expect the international community to finance Greece further after July if the country doesn’t implement its austerity plan. Gold touched $1,490.85 an ounce yesterday, the lowest level since May 20. “We would not be surprised to see a pick-up in safe-haven interest in the short term,” William Adams, an analyst at Basemetals.com in London, said today in a report. “Given the uncertainty over Greece, we are surprised they have not attracted more safe-haven buying,” he said, referring to gold and silver. Immediate-delivery gold gained $4.65, or 0.3 percent, to $1,502.70 an ounce by 11:35 a.m. in London. Gold for August delivery was up 0.5 percent at $1,503.30 an ounce on the Comex in New York. Bullion rose to $1,502.50 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from $1,498 at yesterday’s afternoon fixing. Gold is up 5.8 percent in 2011 after climbing the past 10 years, the longest run of gains in at least nine decades. Europe’s debt crisis helped bullion reach a record $1,577.57 on May 2. Greek Prime Minister George Papandreou called on lawmakers to obey their “patriotic conscience” and back tougher austerity measures, as they began to debate a five-year budget plan yesterday. Failure to pass Papandreou’s proposed 78 billion euros ($111 billion) of cuts and asset sales may lead to the euro area’s first sovereign default. Rolling Over France proposed a target of rolling over 70 percent of Greece’s debt. Euro-region finance ministers are set to meet on July 3 in Brussels to advance a plan that is supposed to be approved at a follow-up meeting on July 11. A deal on the rollovers is necessary to get the new aid package passed, a condition for freeing up a 12 billion-euro payment from the original bailout that Greece needs to meet bond maturities. “Gold is approaching levels at which it will present a buying opportunity,” Edel Tully, a London-based analyst at UBS AG, said in a report. “At current prices there is an expectation that physical demand should help support the market. Indian buying has picked up since late on Friday, but a move down to $1,485, where many orders are sitting, is likely required to bring this market out in force.” India is the largest buyer of bullion. ETP Holdings Gain Holdings in exchange-traded products backed by gold rose for a third day yesterday, gaining 2.7 metric tons to 2,065.7 tons. That’s the highest level since May 4, according to data compiled by Bloomberg. Silver for immediate delivery rose 1.2 percent to $33.9813 an ounce in London after yesterday dropping to $33.385, the lowest level since May 17. Palladium gained 1.3 percent to $738.75 an ounce. It reached a five-week low of $721.75 yesterday. Platinum was up 1.1 percent at $1,692.10 an ounce after yesterday dropping to a three-month low of $1,663.80. To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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