Gold gains from 12-week lows

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Gold gains from 12-week lows

Gold futures rose from a 12-week low as Spain’s escalating debt woes spurred demand for a haven. Silver also rebounded

Spain’s Prime Minister Mariano Rajoy said this week that the nation “is facing an economic situation of extreme difficulty,” and bond yields climbed to the highest since December. Yesterday, gold sales to India rose to the highest since March 14, Edel Tully, a UBS Ltd. analyst in London, said in a report. Futures fell almost 4 per cent in the past two days.

“Investors are worried about Spain, and there is tension that there may be some kind of an organized default,” James Cordier, a portfolio manager at OptionSellers.com in Tampa, Florida, said in a telephone interview. “The sharp fall in the last few sessions has helped some physical demand come in.”

Gold futures for June delivery gained 1 per cent to settle at $US1,630.10 an ounce at 1:41 p.m. on the Comex in New York. Yesterday, the price touched $US1,613, the lowest for a most- active contract since Jan. 10.

The metal has dropped 2.5 per cent this week as Federal Reserve minutes indicated policy makers may refrain from more U.S. monetary stimulus. Jewelers in India extended a strike to protest a proposed tax.

Silver futures for May delivery jumped 2.2 per cent to $US31.73 an ounce. Yesterday, the price tumbled 6.7 per cent, touching a 10-week low.

On the New York Mercantile Exchange, platinum futures for July delivery rose 0.6 per cent to $US1,607.60 an ounce. Palladium futures for June delivery advanced 1.9 per cent to $US644.80 an ounce on the Nymex.

Bloomberg News

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