Gold hovers near record gains as europe crisis continues

Gold managed to cling on to record overnight gains as its safe haven status remained intact after high level Europe talks failed to convince investors and traders that the euro zone debt crisis would be solved effectively. US gold for December delivery was seen trading at $1787.24 an ounce at 1.00 p.m Singapore time while Spot gold was at $1784.28 an ounce after rising 1 per cent in the previous session. Analysts said the yellow metal is likely to extend gains during the day as Europe talk’s failure lifted its appeal as a safe haven asset. Meanwhile, Holdings of the SPDR Gold Trust, the world''s largest gold-backed exchange-traded fund, edged up 0.2% from a day earlier to 1,262.899 tons by August 16 On Tuesday, Gold futures finished at a record level after climbing $27 an ounce as investors remained on the defensive following weakness in global stock markets and disappointing data on European economic growth. Gold for December delivery rose $27, or 1.5%, to settle at $1,785 an ounce on the Comex division of the New York Mercantile Exchange. The previous closing record was Wednesday''s $1,784.30. September Silver climbed 51 cents to end at $39.82 an ounce, but the September contract for Copper shed 4 cents to finish at $3.99 a pound.