Gold futures gained for a second day as renewed concerns about Europe’s sovereign-debt crisis boosted demand for the metal as an alternative investment. Futures for August delivery advanced as much as 0.4 percent to $1,519.10 an ounce on the Comex in New York before trading at $1,517.20 at 3:08 p.m. in Singapore. They jumped 2 percent yesterday. Gold for immediate delivery was little changed at $1,516.85. Spot silver gained as much as 1.3 percent. Moody’s Investors Service downgraded Portugal’s debt yesterday, to Ba2 from Baa1, making it the second euro-region country with a non-investment-grade rating. Discussions to involve private investors in a new rescue for Greece make it more likely that the European Union will require the same pre- conditions in the case of Portugal, Moody’s said in a statement. “Is there a chance that there’s going to be another issue there? That’s well on the agenda of people and that’s a supporting move,” said Jonathan Barratt, a managing director of Commodity Broking Services Pty in Sydney. “People have this flight to quality when they see it as a concern.” Gold for immediate delivery has advanced 6.8 percent this year, heading for its 11th annual gain. Europe’s debt crisis helped push prices to a record $1,577.57 an ounce on May 2. Futures touched an all-time high of $1,577.40 on the same day. Recent rallies in U.S. equity markets and a weaker dollar may also increase demand for the metal, Barratt said. The Standard & Poor’s 500 Index rose 5.6 percent last week. The dollar declined as much as 0.3 percent today against a basket of six currencies. Silver for immediate delivery advanced 1 percent to $35.7950 an ounce, after a 3.9 percent surge yesterday. Futures for September delivery gained as much as 1.6 percent to $35.96 an ounce before trading at $35.795 an ounce. “The rally is there, the momentum can continue for a couple of days more, especially in both silver and gold,” said Kishore Narne, head of research at Anand Rathi Commodities Ltd. in Mumbai. Gold may reach about $1,540 in a few days, he said. Spot palladium gained 0.4 percent to $778.25 an ounce while cash platinum was little changed at $1,738.80 an ounce. To contact the reporters for this story: Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net; Madelene Pearson at mpearson1@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net.

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