Gold prices climb for first time in four days

Gold gained for the first time in four days in London as concern about Greece's debt crisis spurred demand for the metal as a protection of wealth. European Central Bank Executive Board member Juergen Stark said in an interview with Die Welt newspaper that he doesn't expect the international community to finance Greece further after July if the country doesn't implement its austerity plan. Gold touched $1,490.85 an ounce, the lowest level since May 20. "We would not be surprised to see a pick-up in safe-haven interest in the short term," William Adams, an analyst at Basemetals.com in London, said today in a report. "Given the uncertainty over Greece, we are surprised they have not attracted more safe-haven buying," he said, referring to gold and silver. Immediate-delivery gold gained $4.65, or 0.3 per cent, to $1,502.70 an ounce by 11:35am in London. Gold for August delivery was up 0.5 per cent at $1,503.30 an ounce on the Comex in New York. Bullion rose to $1,502.50 an ounce in the morning "fixing" in London, used by some mining companies to sell output, from $1,498 at Monday's afternoon fixing. Gold is up 5.8 per cent in 2011 after climbing the past 10 years, the longest run of gains in at least nine decades. Europe's debt crisis helped bullion reach a record $1,577.57 on May 2. Greek Prime Minister George Papandreou called on lawmakers to obey their "patriotic conscience" and back tougher austerity measures, as they began to debate a five-year budget plan on Monday. Failure to pass Papandreou's proposed €78 billion of cuts and asset sales may lead to the euro area's first sovereign default. Euro-region finance ministers are set to meet on July 3 in Brussels to advance a plan that is supposed to be approved at a follow-up meeting on July 11. A deal on the rollovers is necessary to get the new aid package passed, a condition for freeing up a €12 billion payment from the original bailout that Greece needs to meet bond maturities. Silver for immediate delivery rose 1.2 per cent to $33.9813 an ounce in London after Tuesday, dropping to $33.385, the lowest level since May 17. Palladium gained 1.3 per cent to $738.75 an ounce. It reached a five-week low of $721.75 on Tuesday. Platinum was up 1.1 per cent at $1,692.10 an ounce after yesterday dropping to a three-month low of $1,663.80.