Biggest Monthly Gold Gain in Nine Years
By Halia Pavliva
prices rose in New York, capping the biggest
monthly increase in nine years, on demand for a
haven following terrorist attacks in India.
Platinum had the biggest weekly gain since May.
At least 124 people were killed and 370 were
injured in almost 48 hours of violence as
terrorists moved through Mumbai, India’s
financial hub. Elements in Pakistan are
responsible for the attacks, the Press Trust of
Indian cited External Affairs Minister Pranab
Mukherjee as saying.
“The devastating attacks in India have added a
new dimension to global jitters,” Jon Nadler, a
senior analyst at Kitco Inc. in Montreal, said
in a report.
Gold futures for February delivery rose $7.70,
or 0.9 percent, to $819 an ounce on the Comex
division of the New York Mercantile Exchange.
This month, the price rose 14 percent, the most
since September 1999. In the week, the metal
climbed 3.4 percent. Futures still are down 2.3
percent in 2008.
Platinum futures for January delivery climbed
$12.60, or 1.4 percent, to $882.30 an ounce on
the Nymex. This week, the metal rose 6.9
percent. The November gain of 6.1 percent
snapped a four-month slide. The price still is
down 42 percent this year.
Pakistan’s President Asif Ali Zardari said
“non-state actors” were forcing their agenda on
India and Pakistan and that the two governments
must not allow them to succeed.
Gold’s gains were limited as the dollar climbed
against the euro, limiting demand for the
precious metal as an alternative investment. The
euro dropped as much as 2 percent against the
‘Dollar May Strengthen’
“It doesn’t make much sense for some investors
to buy gold at a time when the dollar may
strengthen further,” said Sergey Grudev, an
analyst at Standard Bank Russia in Moscow.
The dollar may rise to $1.25 per euro in the
next two months and $1.20 per euro by the end of
the first quarter, he said.
Gold reached a record $1,033.90 on March 17 as
the euro headed for a record against the dollar.
Silver futures for March delivery fell 3.9
cents, or 0.4 percent, to $10.23 an ounce. The
metal rose 5.1 percent in November, ending a
three-month slide. The price was up 7.6 percent
in the week, the most since late September.
Futures are down 31 percent this year.
Palladium futures for March delivery gained
$2.60, or 1.4 percent, to $194.25 an ounce. The
price still gained 7.8 percent this week. In
November, the metal still dropped 2.7 percent,
extending the slide to five months. Futures have
tumbled 49 percent this year.