Gold Advances in New York as Europe Debt Concern Spurs Demand Oct. 17 (Bloomberg) -- Gold advanced to a three-week high as concern that Europe’s sovereign debt woes are deepening spurred demand for a haven investment. German Chancellor Angela Merkel’s spokesman said Europe’s leaders won’t provide the quick resolution to the region’s debt crisis that global policy makers are pushing for at an Oct. 23 summit. Gold futures reached a record $1,923.70 an ounce on Sept. 6 as investors sought to diversify away from equities and some currencies. “People are worried about economic stability,” Tom Pawlicki, an analyst at MF Global Holdings Ltd., said in a telephone interview from Chicago. “We are seeing some flight to quality here.” Gold futures for December delivery rose 0.3 percent to $1,688.10 at 9:32 a.m. on the Comex in New York. Earlier, the price touched $1,696.80, the highest since Sept. 23. Bullion gained 2.9 percent last week, the most in more than a month. “Too much uncertainty remains in the market with questions over issues such as guarantees of European sovereign debt, a Greek default and debt sustainability,” Edel Tully, a London- based analyst at UBS AG, wrote today in a report. “While there is no rush to buy gold here, it is equally clear that investors who are long the yellow metal are not willing to let go of holdings either.” Silver futures for December delivery gained 0.2 percent to $32.245 an ounce. --With assistance from Glenys Sim in Singapore. Editors: Millie Munshi, Steve Stroth To contact the reporters on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net; Debarati Roy in New York at droy5@bloomberg.net To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

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