Gold trades near one-week high on Europe, Middle East concern

LONDON: Gold today traded near a one-week high amid concern about Europe's debt crisis and unrest in the Middle East.

Gold added 41 cents to 1,732.11 dollar an ounce. Prices reached 1,735.62 dollar yesterday, the highest since November 12. Silver was up by 0.08 per cent to 33.19 dollar an ounce, after reaching 33.25 dollar, the highest since October 18.

Moody's Investors Service cut France's credit rating yesterday, renewing concern that Europe's debt crisis will deepen.

Gold gained the most in almost two weeks as Israeli ground forces prepared to enter the Gaza Strip for the first time in almost four years. The US celebrates the Thanksgiving holiday November 22.

Holdings in gold-backed exchange-traded products rose 0.5 metric tonne to a record 2,604.2 tonnes. Assets and prices gained this year as central banks from the US to Asia took steps to bolster economies.

The Bank of Japan refrained from monetary easing after expanding asset purchases in September and October, switching the focus to a December meeting where more measures are forecast to shore up a shrinking economy.