Gold climbed for the first time in three days, silver little changed

Gold climbed for the first time in three days, rising alongside equities, on optimism the U.S. economy may withstand Europe’s debt crisis, which the region’s policy makers are taking steps to resolve.

Spot gold gained as much as 0.4 percent to $1,617.18 an ounce before trading at $1,616.23 an ounce at 11:16 a.m. Singapore time. It fell 0.4 percent yesterday and dropped 0.3 percent on Jan. 6. February-delivery bullion advanced 0.5 percent to $1,616.80 an ounce on the Comex in New York.

“Gold will continue to trade in a broad $1,550 to $1,650 range in the short term as investors battle between trading gold as a commodity and gold as a safe haven,” Sun Liying, an analyst at China International Futures Co., said from Beijing. “To this end, market sentiment about Europe’s debt crisis and movements in the U.S. dollar will drive gold in the near term.”

Asian stocks and the euro extended gains today before German Chancellor Angela Merkel meets with the International Monetary Fund’s managing director Christine Lagarde in Berlin, a day after Merkel and French President Nicolas Sarkozy outlined efforts to stem Europe’s debt crisis. U.S. equities advanced yesterday before the earnings season was kicked off by Alcoa Inc., whose fourth-quarter results, released after the close, matched analysts’ estimates.

Spot silver and platinum were little changed at $29.05 an ounce and $1,425 an ounce, respectively. Cash palladium climbed as much as 1.5 percent to $624.50 an ounce. – BusinessWeek

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Posted by Silver Guru on Jan 10 2012. Filed under Silver prices. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry