Gold Advances Overnight on Physical demand

“Gold gained for the first time in three days in London as physical buying and concern aboutEurope’s debt boosted demand for the metal.

European finance officials endorsed a bailout for Portugal as Luxembourg Prime Minister Jean-Claude Juncker said the region’s ministers floated the idea of extending Greece’s debt- repayment schedule. Billionaire investor George Soros sold 99 percent of his bullion-backed SPDR Gold Trust assets and all 5 million shares in the iShares Gold Trust, a filing showed. Hedge-fund manager John Paulson kept his SPDR Gold Trust stake.

“There’s still a lot of uncertainty in the euro zone” and some physical buyers consider the price “relatively cheap,” said Bernard Sin, the head of currency and metal trading at MKS Finance SA, a bullion refiner in Geneva. “It’s a trading market and it’s no surprise that big investors liquidated positions. They may reinstate positions at a certain point and it doesn’t necessarily mean that others are going to follow.”

Immediate-delivery gold rose $6, or 0.4 percent, to $1,495.30 an ounce by 11:45 a.m. inLondon. Gold for June delivery was 0.3 percent higher at $1,495 an ounce on the Comex inNew York.”

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