Gold extends rally amid EU debt concerns

Gold futures on the COMEX Division of the New York Mercantile Exchange further hiked on Tuesday, as concern that European leaders will be unable to address the region' s debt crisis continued to spur safe-haven demands. The most active gold contract for Dec. delivery climbed 8.1 U.S. dollars, or 0.45 percent, to 1,799.2 dollars per ounce. Market analysts said that the fragility in the euro zone prompted investors to rush for gold as their safe haven investment. Italian Prime Minister Silvio Berlusconi offered to resign as soon as the Parliament approves austerity measures in a vote next week, as the yield of Italy's government bond continued to hike. A trader noted that Italy's instability continues to fuel the feeling that the crisis is not contained, and will spread further in Europe. The trader forecasted that gold would trader at 1,800-1,900 dollars per ounce in early 2012 and might hit 2,000 dollars by the second quarter. Silver for Dec. delivery rose 32.5 U.S. cents, or 0.9 percent, to 35.153 dollars per ounce. Platinum for Jan. delivery also gained 15.1 dollars, or 0.9 percent, to 1,673.1 dollars per ounce.