Gold, Silver Little Changed After Reaching Records
Source: Bloomberg, Nicholas Larkin and Kim Kyoungwha (4/18/11)
"Concern about European debt and faster inflation boosted demand for alternative investments."
China increased banks' reserve requirements to cool inflation that quickened in March to the fastest pace since 2008. The euro weakened against the dollar on speculation Greece will be unable to avoid a default. Unrest in the Middle East and North Africa and concerns about Japan's nuclear crisis also helped gold's gain this year.
Immediate-delivery bullion rose as much as $1.98, or 0.1%, to $1,488.68 an ounce and was little changed at $1,485.30 by 9:12 a.m. in London. Gold for June delivery was 30 cents lower at $1,485.70 an ounce on the Comex in New York after reaching a record $1,489.70.
The cost of insuring Greek government debt rose to a record on April 15.
Reserve ratios will rise a half point from April 21, the People's Bank of China said on its website yesterday. The European Central Bank this month raised interest rates from a record low as inflation in the region quickened to 2.7% in March, the fastest pace since October 2008.
Gold held in exchange-traded products rose 19.29 metric tons to 2,069.95 tons on April 15, the highest level since Jan. 24, data compiled by Bloomberg from 10 providers show.
Silver for immediate delivery climbed as much as 0.9% to $43.3725 an ounce, the highest price since January 1980, the year the metal reached a record $50.35 in New York. It was last little changed at $43.0188 and has surged 39% in 2011.
Palladium was down 0.3% at $763.25 an ounce. Platinum declined 0.3% to $1,787 an ounce.