Gold rises as debt fears force states to seek haven
Gold rose for a second straight day as mounting government debt in Europe boosted demand for the precious metal as a haven.
The euro declined against the dollar after Moody's Investors Service cut Portugal's credit rating to junk, renewing concerns that another European nation will need a bailout. Gold fell in the previous two weeks as Greece avoided a default.
"You're getting a flight-to-quality fear coming in for gold," said Adam Klopfenstein, a senior market strategist at broker Lind-Waldock in Chicago.
"With the anxieties in Portugal and the ongoing debt-ceiling problems in the US, there are too many bullish cases for gold."
Gold futures for August delivery rose $16.60, or 1.1pc, to $1,529.30 an ounce on the Comex in New York. The metal advanced 2pc yesterday.
Before then, gold had climbed 25pc in the past 12 months as escalating sovereign-debt woes and record-low US borrowing costs increased the appeal of the metal as an alternative to currencies.
Silver futures for September delivery rose 51 cents, or 1.4pc, to $35.92 an ounce on the Comex.
Platinum futures for October delivery fell $3.60, or 0.2pc, to $1,738.50 an ounce on the New York Mercantile Exchange.