BLBG : Gold Gains for Second Day as Slowing Recovery Signs Spur Demand
Aug. 26 (Bloomberg) -- Gold advanced for a second day on signs a recovery in global economies may be weakening, spurring haven demand for the precious metal.
Bullion extended gains after Japan’s export slump deepened in July and U.S. home prices fell 6.1 percent in the second quarter as a record number of foreclosures eroded the value of real estate. Oil fell after an industry report showed increasing crude supplies in the U.S., the world’s biggest energy consumer.
“Gold tends to be in investor favor when people lose confidence,” said Charles Lee, a trader with Eugene Investment & Futures Co. in Seoul. “Risk aversion is arising and gold is being sought as a refuge.”
Gold for immediate delivery advanced 0.2 percent to $946.33 an ounce at 9:21 a.m. in Singapore. The metal is up 7.3 percent this year. Crude oil for October delivery fell 41 cents, or 0.6 percent, to $71.64 a barrel on the New York Mercantile Exchange.
Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, decreased 4.58 metric tons to 1,061.83 tons as of Aug. 25, according to figures on the company’s Web site. That’s the lowest since March 13.
Among other precious metals for immediate delivery, silver gained 0.3 percent to $14.32 an ounce, platinum fell 0.1 percent to $1,239.25 an ounce and palladium dropped 0.3 percent to $286.50.
