Gold Heads for Quarterly Gain

Source:

"Gold headed for biggest quarterly advance since the end of 2007."

Gold, little changed in New York, may fall on signs that Europe's financial industry may be stronger than investors estimated, curbing demand for the metal as a means of protecting wealth.

The European Central Bank said it would lend banks 131.9 billion euros ($161.5 billion) for three months, less than some analysts forecast. Gold is headed for its biggest quarterly advance since the end of 2007.

"One of the reasons for gold being a bit lower is the European Central Bank" news, said Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany. "It's easing a little bit the fears of investors and therefore the appeal of gold as a safe haven."

Gold futures for delivery in August lost $3.30, or 0.3%, to $1,239.10 an ounce at 8:49 a.m. on the Comex in New York. Prices are up 11% this quarter. Gold for immediate delivery in London was 0.2% lower at $1,238.40.

"Demand for gold as a safe haven will remain strong, which should oppose any major declines in prices," Eugen Weinberg, head of commodity research with Commerzbank AG, wrote in a report. "Due to the currently high price level, profit-taking by short-term oriented investors is increasing."

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