Gold climbed as investors sought a haven from a rout in financial and commodity markets, which plunged on concern that global economic growth is stalling as governments in the U.S. and Europe remain constrained by debt. Bullion for immediate delivery gained 0.5 percent to $1,654.35 an ounce at 12:02 p.m. in Singapore, rebounding from a 0.3 percent loss. Gold, which touched a record $1,681.72 yesterday, is up 1.6 percent this week, set for the longest run of weekly advances since the five weeks to March 4. “Gold is supported on many fronts and we remain bullish,” said Yang Shandan, a trader at Cinda Futures Co. “There’s fear spreading across all markets,” said Yang, ranked second in a Futures Daily and Securities Times poll of China gold analysts. Asian stocks extended a global slump before a report today that economists project will show U.S. employers added 85,000 workers in July, failing to reduce a jobless rate that’s holding above 9 percent. The Standard & Poor’s 500 Index had its biggest fall since February 2009 yesterday after reports this week that showed growth slowed in manufacturing and service industries. Oil headed for the biggest weekly drop in three months and copper slid on concern that demand for raw materials may slow. The U.S. is the world’s largest energy user and the second- biggest copper consumer. Both copper and crude have dropped this year, while gold has rallied 16 percent. December-delivery gold in New York was little changed at $1,656.60 an ounce, after touching an all-time high of $1,684.90 yesterday. Holdings in exchange-traded products climbed for a ninth day yesterday, gaining 4.1 metric tons to a record 2,182.572 tons, data compiled by Bloomberg show. European Debt “Barring a few pullbacks, gold will move higher,” Yang said from Zhejiang, citing the burden of public debt in the U.S. and Europe. “The bigger problem lies in Europe, where there won’t be any short-term resolution.” The European Central Bank yesterday failed to halt a rout in Italy and Spain as bond yields in both countries soared, even as the ECB resumed bond purchases. A report today may show German industrial output came close to stalling in June. Cash silver, which reached a three-month high of $42.23 an ounce yesterday, gained 0.5 percent to $39.085 an ounce. Spot platinum extended its biggest decline in nine months, falling 0.7 percent to $1,710.50 an ounce. Palladium shed 0.3 percent to $746.50 an ounce after falling the most since March yesterday. To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Source