Gold Prices Jump on Deepening Euro Zone Crisis

Gold prices jumped this morning (Nov. 3) for the first time in four sessions as growing fears that Europe’s debt crisis may worsen sparked demand for the metal as a protection of wealth.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery rose $US17.80, or 1 per cent, to settle at $US1729.60 a troy ounce.

According to Reuters, analysts say that the shock and improbability concerning Greek Prime Minister George Papandreou’s call for a referendum on a European Union bailout agreement continues to reverberate in international markets leading to a revamped safe-haven bid for gold.

“Some people would have been looking on with horror, buying gold on basis of potential Armagedon because of Greece. That’s always there,” said Nick Moore, Head of Commodity Research – Global Banking & Markets at RBS.

Elsewhere on the comdex, silver futures for December delivery gained $1.42, or 4.4%, to $34.16 per ounce, copper rose 8 cents, or 2.3%, to $3.58 per pound, and January platinum and palladium for December each gained 1.8% per ounce.
via Reuters