“Gold gained for a third day in London as concern about Europe’s debt crisis, signs that the U.S. economy is slowing and a weakening dollar spurred demand for the metal as an alternative investment. Palladium climbed.
U.S. payrolls grew at the slowest pace in eight months in May and manufacturing expanded at its slowest pace in more than a year, reports showed last week. The European Union needs to reach an accord on Greece’s debts before finance ministers meet on June 20, EU Economic and Monetary Affairs Commissioner Olli Rehn said yesterday. The dollar slid to a one-month low against six currencies. Gold typically moves counter to the greenback.
“Speculation U.S. economic growth is losing pace and the Greek debt crisis is worsening” is supporting gold, John Meyer, an analyst at Fairfax IS in London, wrote in a report today. “The dollar is off this morning, helping support prices as they push toward the record.”
Immediate-delivery gold gained $4.68, or 0.3 percent, to $1,549.32 an ounce by 11:30 a.m. in London. It yesterday reached $1,553.65, the highest price since May 2. Gold for August delivery was 0.2 percent higher at $1,550.10 an ounce on the Comex in New York.
Bullion was little changed at $1,548.40 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from $1,549 at yesterday’s afternoon fixing.”
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