BLBG: Gold, Little Changed in London, May Advance on Haven Buying
Gold, little changed in London, may end two days of losses on concern the global economy will deteriorate, lifting demand for the metal as a store of value.
President Barack Obama yesterday said the U.S. economy faces a “full-blown crisis” and the nation needs government action now to put people back to work. Senators will vote today on whether to approve Obama’s economic stimulus bill of more than $800 billion.
“We expect bullion to rise as investors seek haven assets on speculation President Barack Obama’s $827 billion stimulus package won’t lead to a rapid recovery by the U.S. economy,” London-based broker Marex Financial Ltd. said in a note.
Bullion for immediate delivery lost 23 cents to $894.32 an ounce by 9:29 a.m. in London. April futures added $2.70, or 0.3 percent, to $895.50 in electronic trading on the Comex division of the New York Mercantile Exchange.
Treasury Secretary Timothy Geithner is scheduled to unveil a financial-rescue plan today that may determine the effectiveness of the stimulus package. Governments are trying to ease a financial crisis that has spurred more than $1 trillion in credit-related losses as the International Monetary Fund predicts global growth will almost grind to a halt this year.
Holdings in the SPDR Gold Trust, the largest exchange-traded fund backed by bullion, extended gains to a record 881.67 metric tons yesterday. Assets in funds managed by ETF Securities Ltd. and Zuercher Kantonalbank are also at an all-time high.
Among other metals for immediate delivery in London, silver fell 0.3 percent to $12.80 an ounce. Platinum rose $2.25, or 0.2 percent, to $992.75 an ounce, and palladium was 1.1 percent lower at $205.25 an ounce.
