Gold, little changed near a record in New York, may climb as concerns about European debt and rising inflation spur demand for an alternative investment.
Gold futures yesterday reached a record $1,463.70 an ounce. Prices have climbed as fighting in Libya, Japan’s nuclear crisis and concerns about European debt boosted demand for the metal as a protector of wealth.
Gold futures for June delivery rose $1.50, or 0.1 percent, to $1,460 an ounce by 8:02 a.m. on the Comex in New York. The metal for immediate delivery in London was 0.1 percent lower at $1,458.30.
Bullion fell to $1,456.50 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from $1,461.50 at yesterday’s afternoon fixing.
The ECB rate increase has a little effect to precious metal. Gold will average $1,460 an ounce this year, up from a previous forecast of $1,426, and prices will average $1,650 next year.(www.sfgate.com)