Gold and Silver Rise on Renewed Debt Concerns

“Gold may rise for a third day in London as concern aboutEurope’s debt woes spurs demand for precious metals as a protection of wealth. Silver gained.

Standard & Poor’s yesterday downgraded Greece’s credit rating for the fourth time since April 2010, rekindling concern the region’s debt crisis is escalating. Silver extended its rebound after dropping into a bear market last week.

“Economic uncertainties in the monetary union and fears over peripheral debt were returning to the focus yet again,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said in a report to clients. “In the short run, bullion is likely to remain well supported, also helped by physical activity picking up inAsia amid seasonal demand.”

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