Gold rises for private wealth traders

The value of gold has climbed for those using their private wealth to invest in the precious metal due to speculation the debt problems in Europe will prompt demand for the commodity to rise.

Gold, which is traditionally seen as a safe haven in times of financial uncertainty, was up 0.2 per cent to $1,167.60 per ounce at 08:33 BST in London, Bloomberg reports.

It has risen in value by 6.4 per cent so far in 2010 and Edel Tully, precious metals strategist for UBS, was quoted by the news source as saying gold’s popularity will rise as European risks grow larger.

’If stocks are under pressure, other commodities are under pressure [and] gold is performing as you would expect it to perform given external circumstances,’ she was quoted as saying.

Demand for gold was especially high during 2009, something chairman of GFMS Philip Klapwijk recently attributed to worries regarding quantitative easing and the stability of financial institutions.ADNFCR-2318-ID-19750181-ADNFCR