Gold climbs to six-week high as European concerns spur demand

LONDON: Gold today climbed to a six-week high as concerns about Europe's debt crisis spurred demand for the metal as a protection of wealth.

The gold gained USD 18.70, or 1.1 per cent, to USD 1,773.35 an ounce, the highest price since September 22. However, silver fell 0.3 per cent to USD 34.05 an ounce.

Italian Prime Minister Silvio Berlusconi's allies pressured him to step aside after contagion from the region's sovereign debt crisis pushed Italy's borrowing costs to euro-era records. That overshadowed Greek Prime Minister George Papandreou's agreement to step down, sending European equities lower.

The bullion is in the eleventh year of a bull market, the longest winning streak since at least 1920 in London. Prices reached a record USD 1,921.15 on September 6 and rose nearly 24 per cent this year.

Holdings in exchange-traded products backed by gold gained 3.1 metric tons to 2,284.6 tons on November 4, the highest level since August 23.