http://finance.yahoo.com/news/Gold-Advances-to-Record-as-bloomberg-1448057432.html?x=0&sec=topStories&pos=2&asset=&ccode=Gold climbed to a record above $1,890 an ounce in London and New York as concern about slowing economic growth and debt crises spurred demand for bullion as a protection of wealth. Platinum gained to a three-year high.
German Chancellor Angela Merkel attempted to shut the door on common euro-area bonds as a means to solve the debt crisis, saying she won’t let financial markets dictate policy. The Federal Reserve holds its annual symposium in Jackson Hole, Wyoming, this week, amid speculation it may signal a third round of asset purchases to boost the faltering recovery.
“Gold is still the safe haven, and as long as people fear recession in the U.S. and euro-zone debt problems, gold remains in demand,” Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said by phone. More U.S. asset purchases “would be bullish for gold. Increasing liquidity will lead to higher future inflation, which is a reason to buy gold.”
Immediate-delivery gold gained as much as $42.70, or 2.3 percent, to $1,894.80 an ounce and traded at $1,881.65 by 10:14 a.m. in London. Gold for December delivery was up 1.8 percent at $1,885.90 an ounce on the Comex in New York after touching a record $1,898.60.
Gold is in the 11th year of a bull market, the longest winning streak since at least 1920 in London, as investors seek to diversify their holdings away from equities and some currencies. Global stocks earlier this month slipped to an 11- month low, and bullion reached all-time highs in euros, British pounds and Swiss francs today.
