BLBG: Gold Advances in London on Demand for Haven From Equity Turmoil
By Rachel Graham
Oct. 6 (Bloomberg) -- Gold rose for the first time in five days in London as global equity markets tumbled, buoying demand for the metal as a haven. Silver also rose.
Stock markets in Europe and U.S. futures dropped as the year-long credit market seizure prompted bank bailouts across Europe and pledges by governments to protect depositors.
``European stocks opened lower, on the back of that some buying has come back into the market,'' Afshin Nabavi, a senior vice president at MKS Finance SA, one of Switzerland's four bullion refiners, said by phone from Geneva.
Gold for immediate delivery rose $23.90, or 2.9 percent, to $859.40 an ounce as of 11:35 a.m. in London. Futures for December rose $29, or 3.5 percent, to $862.20 in electronic trading on the Comex division of the New York Mercantile Exchange.
Among other metals for immediate delivery, silver gained 22 cents, or 2 percent, to $11.36 an ounce. Platinum climbed $13.50, or 1.4 percent, to $975.50 an ounce and palladium advanced $1, or 0.5 percent, to $200 an ounce.
To contact the reporter on this story: Rachel Graham in London at email@example.com