Gold Gains in London Trading

Gold gained in London as investors sought protection from the wealth of the debt problems of Europe and as China's decision to keep a lid on interest rates may stimulate demand.

China, which last week raised the reserve ratios for banks by half a percent, did not increase interest rates this weekend, even after consumer prices rose at their fastest pace in more than two years in November. The euro was little changed against the dollar amid signs of division among European governments on how to contain the crisis in the region of the debt.

"The current uncertainty over the euro zone debt and inflationary pressures in China increasingly create a positive environment for future earnings bullion," said James Moore, analyst at TheBullionDesk.com in London, in a report.

immediately bullion delivery added $ 5.02, or 0.4 percent, to $ 1,391.02 an ounce at 9:01 am in London. Prices reached a record $ 1431.25 on 7 December. The metal for delivery in February was 0.5 percent, to $ 1,391.70 in the Comex in New York.

The People's Bank of China on December 10 ordered banks to park more money with the central bank for the third time in five weeks. Copper rose to a record today and other products purchased on speculation demand from countries in Asia will increase. China is the largest buyer of gold jewelry after India and some investors buy gold as a hedge against rising consumer prices and low interest rates.

"Gold is rising along with other commodities as investors buy commodities in anticipation of even higher prices," said Liu Yangyi, operator of Beijing Zhong Jing He Investments. "The potential for a major adjustment in China is still a risk."

"Structural weaknesses"

Union leaders attending a summit on December 16 and 17, with Italy, Belgium and Luxembourg for euro-zone bonds, while Germany and France oppose the idea. the survival of the euro is "not negotiable", that require monitoring of the budget and closer economic cooperation to overcome the "structural weaknesses" in the euro area, German Chancellor Angela Merkel and French President Nicolas Sarkozy said 10 December.

gold assets in exchange-traded products fell 2.35 to 2093.41 tons metric tons on 10 December. Holdings reached a record 2,104.65 tonnes on 14 October. won silver holdings to 18.95 tonnes 15,039.14 tonnes, the highest amount since at least February, data from four suppliers of entertainment.

Silver for immediate delivery in London rose 1.8 percent to $ 29.1775 an ounce. It rose to $ 30.7025 on December 7, the highest since March 1980 and 73 percent this year. Prices reached a record high of $ 50.35 in New York in 1980, a year after the Hunt brothers tried to corner the market.

Palladium rose 1.3 percent to $ 745.25 an ounce. It rose to $ 779.10 on 3 December, the highest since April 2001. Platinum was 0.4 percent, to $ 1,688.50 an ounce.