Gold rose for the first time in three days in London

Gold rose for the first time in three days in London as concern about the debt crisis in Europe led investors to protect their wealth.

Portugal Fitch Ratings downgraded by one level yesterday and said the economy faces a "deterioration" of Outlook as the government struggles to contain the euro zone's fourth largest budget deficit. Gold rose to a record $ 1431.25 an ounce on 07 December amid growing concern about the fiscal health of countries like Ireland, Spain and Greece.

"Gold prices have risen largely on the sovereign risk in Europe," said Chris Kwon, Co. operates Seoul-based KTB Securities "ingots may soon break the $ 1,400 mark again."

Gold for immediate delivery rose $ 4.83, or 0.3 percent, to $ 1,384.93 an ounce at 12:45 pm in London. Gold futures for February delivery closed at $ 1,380.50 in the Comex in New York yesterday. Trade is closed today.

Bullion rose to $ 1,380.50 an ounce in the morning "fix" in London, used by some mining companies to sell production, from $ 1,373.50 in the afternoon yesterday fixing. Spot prices by 26 percent this year, heading for a 10th consecutive year, the longest streak in at least nine decades.

The euro rose against the dollar after Standard & Poor's said on Tuesday that France deserves a rating of AAA sovereign credit because of the "richness and depth" of its economy and the view that the government of President Nicolas Sarkozy will consolidate its budget deficit.

gold assets in exchange-traded products fell 3.12 metric tons to 2,101.3 tons yesterday. Holdings reached a record 2,114.6 tons on 20 December.

Silver for immediate delivery in London was little changed at $ 29.2725 an ounce. Palladium rose 1.6 percent to $ 764.25 an ounce. Platinum was 0.4 percent, to $ 1,726.25 an ounce.