Gold climbed for a second day, paring this week’s drop, as a decline from a record boosted buying interest and concern about Europe’s debt woes spurred demand for a protection of wealth. Silver and platinum rose. Gold for immediate delivery gained 0.2 percent to $1,390.45 an ounce at 2:14 p.m. in Seoul. The metal is down 1.7 percent this week, set for the first weekly drop in three, as traders book profits before the end of the year. Prices reached the highest ever of $1,431.25 on Dec. 7. The February-delivery contract was little changed at $1,390.70 an ounce on the Comex in New York, bringing this week’s loss to 1 percent. Fitch Ratings’ downgrade of Ireland is “a concern and if it goes down another notch, it is even more of a concern because paper loses any investment grade whatsoever,” said Jonathan Barratt, managing director of Commodity Broking Service Pty in Sydney. Today’s gain is probably more of reaction to a recent price drop and there may be a “good opportunity to get in.” The euro traded near the lowest in more than a week against the dollar, set for a weekly loss, after Fitch Ratings yesterday downgraded Ireland’s credit rating, adding to concern that Europe’s debt crisis will escalate. Fitch yesterday said the European Central Bank’s bond purchases may need to be increased and Europe’s rescue fund expanded to stem contagion from the sovereign-debt crisis. Gold priced in euros reached a record on Dec. 7. Gold has gained 27 percent this year and is set for the 10th annual gain on investor demand for an alternative to debasing currencies. ‘Safe Haven’ “Investors continued to buy gold as a safe-haven asset,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd., wrote in a report today. “There is still a degree of uncertainty surrounding the U.S. recovery and Europe’s sovereign risk issues.” U.S. Federal Reserve policy makers meet on Dec. 14 to discuss a potential plan to extend Treasury purchases to support the economy. President Barack Obama this week agreed to extend tax reductions to boost growth, a measure that may widen the $1.3 trillion budget deficit. Gold’s gains may be limited this month as traders book 2010 profit, said Adam Klopfenstein, a senior strategist at Lind- Waldock, a broker in Chicago. Silver for immediate delivery rose 0.6 percent to $28.8925 an ounce, paring this week’s drop to 1.7 percent. The price rallied to $30.7025 on Dec. 7, the highest price since 1980. Silver outperformed gold this year, advancing 71 percent. Silver holdings in exchange-traded products climbed 11.13 metric tons to 15,020.19 tons yesterday, the highest amount since at least February, data compiled by Bloomberg from four providers show. Palladium for immediate delivery was 0.5 percent higher at $742.90 an ounce. Still, the price is down 3.3 percent this week. Cash platinum rose 0.3 percent to $1,681.60 an ounce, paring this week’s loss to 2.7 percent. To contact the reporter on this story: Sungwoo Park in Seoul at spark47@bloomberg.net. To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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