Gold Biggest Monthly Gain in Nine YearsGold Has Biggest Monthly Gain in Nine Years on Demand for Haven
By Halia Pavliva
Nov. 28 (Bloomberg) -- Gold prices rose in New York,capping the biggest monthly increase in nine years, on demandfor a haven following terrorist attacks in India. Platinum hadthe biggest weekly gain since May.
At least 124 people were killed and 370 were injured inalmost 48 hours of violence as terrorists moved through Mumbai,India’s financial hub. Elements in Pakistan are responsible forthe attacks, the Press Trust of Indian cited External AffairsMinister Pranab Mukherjee as saying.
“The devastating attacks in India have added a newdimension to global jitters,” Jon Nadler, a senior analyst atKitco Inc. in Montreal, said in a report.
Gold futures for February delivery rose $7.70, or 0.9percent, to $819 an ounce on the Comex division of the New YorkMercantile Exchange. This month, the price rose 14 percent, themost since September 1999. In the week, the metal climbed 3.4percent. Futures still are down 2.3 percent in 2008.
Platinum futures for January delivery climbed $12.60, or1.4 percent, to $882.30 an ounce on the Nymex. This week, themetal rose 6.9 percent. The November gain of 6.1 percent snappeda four-month slide. The price still is down 42 percent thisyear.
Pakistan’s President Asif Ali Zardari said “non-stateactors” were forcing their agenda on India and Pakistan and thatthe two governments must not allow them to succeed.
Gold’s gains were limited as the dollar climbed against theeuro, limiting demand for the precious metal as an alternativeinvestment. The euro dropped as much as 2 percent against thegreenback.
‘Dollar May Strengthen’
“It doesn’t make much sense for some investors to buy goldat a time when the dollar may strengthen further,” said SergeyGrudev, an analyst at Standard Bank Russia in Moscow.
The dollar may rise to $1.25 per euro in the next twomonths and $1.20 per euro by the end of the first quarter, hesaid.
Gold reached a record $1,033.90 on March 17 as the euroheaded for a record against the dollar.
Silver futures for March delivery fell 3.9 cents, or 0.4percent, to $10.23 an ounce. The metal rose 5.1 percent inNovember, ending a three-month slide. The price was up 7.6percent in the week, the most since late September. Futures aredown 31 percent this year.
Palladium futures for March delivery gained $2.60, or 1.4percent, to $194.25 an ounce. The price still gained 7.8 percentthis week. In November, the metal still dropped 2.7 percent,extending the slide to five months. Futures have tumbled 49percent this year.
To contact the reporter on this story:Halia Pavliva in New York athpavliva@bloomberg.net.
Last Updated: November 28, 2008 14:44 EST