Nicholas Larkin and Kim Kyoungwha
June 14, 2011
Gold may gain for the first time in three days in New York as concern about rising inflation and Europe’s debt crisis spur demand for the metal as a protection of wealth.
China ordered lenders to set aside more cash as reserves after inflation accelerated to the fastest pace in almost three years, while consumer price increases in India quickened. Standard & Poor’s yesterday branded Greece with the world’s lowest credit rating, saying the nation is “increasingly likely” to face a debt restructuring.
“The inflation story is still in the back of people’s minds,” said Bernard Sin, the head of currency and metal trading at MKS Finance SA, a bullion refiner in Geneva. “Europe is definitely a problem, that’s why you’re seeing decent demand. Physical traders might be happy to get in at these levels.”