Gold above USD 1,900 as growth, debt concerns boost demand

LONDON: Gold on Monday rose above USD 1,900 an ounce as concern about slowing economic growth and Europe's debt woes spurred demand for a protection of wealth.

The gold gained USD 7.70, or 0.4 per cent to USD 1,890.57 an ounce, after touching USD 1,903. Floor trading will be closed today for the Labour Day holiday. However, silver declined 1.3 per cent to USD 42.69 an ounce.

European equities dropped after an election loss for German Chancellor Angela Merkel's party spurred concern that support for bailing out Europe's indebted nations may fade.

Bullion jumped 3.1 per cent on September 2, the most in almost four weeks, as data showed the US jobs market stalled in August, fuelling concern the country's economy may be headed for a recession.

Bullion is in the eleventh year of a bull market, the longest winning streak since at least 1920 in London, as investors seek to diversify away from equities and some currencies. The metal is up 33 per cent this year, outperforming global stocks, commodities and Treasuries.