Gold climbed in New York as speculation Europe’s debt crisis is worsening spurred demand for the metal that’s near a 34-month low. Silver advanced.
Gold futures dropped 23 percent in the second quarter, the most since at least 1975, as Federal Reserve Chairman Ben S. Bernanke said that the Fed may slow its asset purchases this year. Two Portuguese ministers resigned from the government and borrowing costs also increased in Spain and Italy. U.S. markets will be closed tomorrow for the Independence Day holiday, a day before a report due that may show more U.S. hiring in June.
Gold for August delivery gained 1.1 percent to $1,256.70 an ounce by 7:40 a.m. on the Comex in New York. Prices reached $1,179.40 on June 28, the lowest since Aug. 2, 2010. Futures trading volume was about the average in the past 100 days for this time of day, according to data compiled by Bloomberg. Gold for immediate delivery in London rose 1.1 percent to $1,257.05.
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