MW:Gold futures climb ahead of Europe debt auctions
Germany, Italy and Spain prepare for debt sales
By Sara Sjolin
LONDON (MarketWatch) — Gold futures Wednesday gained for a second day, reaching their highest level since mid-December.
Gold for February delivery GC2G +0.90% added $13.9 to $1,645.5 an ounce, or a rise of 0.85%, as Germany, Italy and Spain prepared to sell 21 billion euros ($26.8 billion) of government bonds over the next two days.
On Tuesday, gold finished 1.5% higher.
Later Wednesday, Germany will auction 4 billion euros of 5-year notes, while Spain and Italy plan to sell up to 17 billion euros of debt on Thursday.
Investors tend to flock to safe-havens such as gold and Treasurys during times of economic uncertainty. This can affect gold prices.
James Moore, an analyst at TheBullionDesk.com, said that the metal “continues to benefit from fund buying as speculative players rebuild their positions.”
He said in a note that “in addition to the fund buying there is also evidence of good physical and investment demand.”
The gain in gold prices inspired other metals to head north.
Silver for March delivery SI2H +1.28% added 1.22% to 30.18 an ounce.
