Gold
may climb for a fifth day in London, the longest run of gains since
January, on speculation lower borrowing costs and Europe's debt crisis
will spur demand for a protection of wealth. The euro fell versus the
dollar after a government report showed Spain's economy shrank last
quarter amid the European debt crisis. The Reserve Bank of Australia
will reduce interest rates on Tuesday, economists expect. Gold is down
for a third month even after International Monetary Fund data showed Mexico, Russia and Turkey added about 44.8 tonne to reserves in March.
"Given the likely need for a further loosening of interest rates and the implications on real-interest rates and the interest from central banks, we expect gold to maintain its longer-term up-trend ," James Moore, an analyst at The-BullionDesk .com in London, said on Monday in a report. Bullion for immediate delivery was little changed at $1,662.23 an ounce by 11:15 am in London. Prices are down 0.4% this month. June-delivery futures were 0.1% lower at $1,662.50 on the Comex in New York. Gold at the morning "fixing," used by some mining companies to sell output, was little changed at $1,662.50 an ounce in London from $1,663.50 in the afternoon on April 27.
"Given the likely need for a further loosening of interest rates and the implications on real-interest rates and the interest from central banks, we expect gold to maintain its longer-term up-trend ," James Moore, an analyst at The-BullionDesk .com in London, said on Monday in a report. Bullion for immediate delivery was little changed at $1,662.23 an ounce by 11:15 am in London. Prices are down 0.4% this month. June-delivery futures were 0.1% lower at $1,662.50 on the Comex in New York. Gold at the morning "fixing," used by some mining companies to sell output, was little changed at $1,662.50 an ounce in London from $1,663.50 in the afternoon on April 27.
