Gold Advances Best Run Since October
Gold
climbed for a third day, set for the longest run of gains since October, as
slumping equity markets and political uncertainty in Greece spurred demand for
a haven.
The U.S. Mint sold 42,000 ounces of gold coins so far this
month compared with 18,000 ounces in all of December. In China, the
largest consumer, volumes for the benchmark spot contract on the Shanghai Gold
Exchange rose today to the highest level since Dec. 18.
European policy makers are focused on the fate of Greece,
which triggered the region’s sovereign-debt crisis in 2009, as campaigning
begins for a Jan. 25 election that Prime Minister Antonis
Samaras said may lead to an exit from the 19-member euro zone region should the
opposition anti-austerity Syriza alliance win. The
euro traded near an almost nine-year low.
“Gold benefits from an increase in risk aversion,” said
Mark To, head of research at Wing Fung Financial
Group, a trader and refiner in Hong Kong. “With crude oil below $50 and
uncertainty building around Greece, equity markets have been dragged lower,
triggering a flight to safety.”