By Myra P. Saefong, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures climbed Wednesday, looking to end a three-session losing streak, with investors weighing the metal’s safe-haven appeal on the heels of rising tension between Iran and Israel and ongoing uncertainty over Greece’s debt problems.
“Gold is being supported by the never ending Greek debt saga and increased tensions between Israel and Iran which has seen U.S. crude rise above $101 per barrel,” said analysts at GoldCore, in a note.
Gold for April delivery GC2J +0.92% rose $18.90, or 1.1%, to trade at $1,736.60 an ounce on the Comex division of the New York Mercantile Exchange. Prices had fallen by more than $23 an ounce over the past three trading sessions.
Gold’s gains come as Asian and European markets got a lift after Gov. Zhou Xiaochuan of the People’s Bank of China voiced optimism that Europe can overcome its sovereign-debt crisis and said China will expand investments in the euro zone.
The precious metal found support from the People’s Bank of China’s “involvement in assisting with euro-zone debt crisis, and I believe in advance of [U.S.] inflationary data from PPI on Thursday and CPI on Friday,” said Jeff Wright, a precious-metals analyst with Global Hunter Securities.
Silver futures also climbed, finding support from upbeat U.S. manufacturing data, with March silver SI2H +0.82% tacking on 36 cents, or 1.1%, to $33.71 an ounce.
The Empire State manufacturing index rose to 19.5 in February, its highest level since June 2010, the New York Federal Reserve Bank said Wednesday. The size of the gain in February surprised analysts.
“Silver is both a precious and industrial metal, with over 60% of demand for industrial applications, positive signals for economic growth provide a leg up for silver going forward,” said Wright.
“Also, silver has not seen the same level of attention which gold has in the past couple quarters and should not be ignored,” he said.
Copper for March delivery HG2H -0.46% traded 1 cent, or 0.2%, lower at $3.81 per pound.
April platinum PL2J +0.91% rose $16.40, or 1%, to $1,644.40 an ounce while March palladium PA2H -0.22% traded at $690 an ounce, up $2.75, or 0.4%.
Myra Saefong is a MarketWatch reporter based in San Francisco
