LONDON: Gold may gain in London , extending the longest streak of quarterly gains in more than three decades, as fighting in Libya and concerns about European debt spur demand for an alternative investment.
US political and military leaders said they're unwilling to start providing arms for Libyan rebels as Muammar Gaddafi's troops regained the upper hand. Ireland's central bank instructed four lenders on Thursday to raise 24 billion euros ($34 billion) following stress tests.
Gold reached a record $1,447.82 an ounce on March 24 as fighting in Libya, the Japanese nuclear crisis and concerns about European debt boosted demand. Gold is supported "on the back of expectations that the military intervention in Libya will prove to be a prolonged affair, coupled with the renewed concerns over the sovereign debt problems in Europe," Marc Elliott , an analyst at Fairfax IS in London, said in a report.
Immediate-delivery bullion rose 95 cents, or 0.1%, to $1,433.25 an ounce by 11:34 am in London. Prices gained 0.8% this year through March and climbed the past 10 quarters, the best run of gains since 1979. Gold for June delivery was 0.4% lower at $1,434.60 an ounce on the Comex in New York . Bullion fell to $1,434.50 an ounce in the morning "fixing" in London, used by some mining companies to sell output, from $1,439 at Thursday's afternoon fixing.
Ratings Cut
Standard & Poor's cut credit ratings for Greece and Portugal this week. Irish central bank Governor Patrick Honohan said he expects that the two of the country's six domestic banks that aren't already owned by the government will fall under state control.
Uncertainty surrounding Libya and European sovereign risk, including Ireland, "encouraged gold safe-haven buying," Mark Pervan, head of commodity research at Australia & New Zealand Banking Group, wrote in a report on Friday.
Eleven of 25 traders, investors and analysts surveyed by Bloomberg, or 44%, said that bullion will rise next week. Nine predicted lower prices and five were neutral. Sales of American Eagle gold coins fell 21% to 73,500 ounces in March, the lowest level since December, according to the US Mint's website.
Coin Sales
Silver Eagle coin sales declined 15% to 2.767 million ounces last month, also the lowest level since December, the data show. Sales averaged 2.89 million ounces in 2010. Silver has outperformed other precious metals this year.
Silver for immediate delivery was little changed at $37.615 an ounce. It reached $38.165 on March 24, the highest level since February 1980, the year the metal reached a record $50.35 in New York. Prices gained 22% in the three months through March, a ninth straight quarterly advance and the best run of gains since at least 1950.
Palladium was up 0.5% at $767.50 an ounce, and fell 4.8% last quarter. Platinum gained 0.2% to $1,771 an ounce, after declining 0.1% last quarter. Platinum and palladium are used in pollution-control devices in automobiles.
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US political and military leaders said they're unwilling to start providing arms for Libyan rebels as Muammar Gaddafi's troops regained the upper hand. Ireland's central bank instructed four lenders on Thursday to raise 24 billion euros ($34 billion) following stress tests.
Gold reached a record $1,447.82 an ounce on March 24 as fighting in Libya, the Japanese nuclear crisis and concerns about European debt boosted demand. Gold is supported "on the back of expectations that the military intervention in Libya will prove to be a prolonged affair, coupled with the renewed concerns over the sovereign debt problems in Europe," Marc Elliott , an analyst at Fairfax IS in London, said in a report.
Immediate-delivery bullion rose 95 cents, or 0.1%, to $1,433.25 an ounce by 11:34 am in London. Prices gained 0.8% this year through March and climbed the past 10 quarters, the best run of gains since 1979. Gold for June delivery was 0.4% lower at $1,434.60 an ounce on the Comex in New York . Bullion fell to $1,434.50 an ounce in the morning "fixing" in London, used by some mining companies to sell output, from $1,439 at Thursday's afternoon fixing.
Ratings Cut
Standard & Poor's cut credit ratings for Greece and Portugal this week. Irish central bank Governor Patrick Honohan said he expects that the two of the country's six domestic banks that aren't already owned by the government will fall under state control.
Uncertainty surrounding Libya and European sovereign risk, including Ireland, "encouraged gold safe-haven buying," Mark Pervan, head of commodity research at Australia & New Zealand Banking Group, wrote in a report on Friday.
Eleven of 25 traders, investors and analysts surveyed by Bloomberg, or 44%, said that bullion will rise next week. Nine predicted lower prices and five were neutral. Sales of American Eagle gold coins fell 21% to 73,500 ounces in March, the lowest level since December, according to the US Mint's website.
Coin Sales
Silver Eagle coin sales declined 15% to 2.767 million ounces last month, also the lowest level since December, the data show. Sales averaged 2.89 million ounces in 2010. Silver has outperformed other precious metals this year.
Silver for immediate delivery was little changed at $37.615 an ounce. It reached $38.165 on March 24, the highest level since February 1980, the year the metal reached a record $50.35 in New York. Prices gained 22% in the three months through March, a ninth straight quarterly advance and the best run of gains since at least 1950.
Palladium was up 0.5% at $767.50 an ounce, and fell 4.8% last quarter. Platinum gained 0.2% to $1,771 an ounce, after declining 0.1% last quarter. Platinum and palladium are used in pollution-control devices in automobiles.
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