Gold Rises to Four-Day High on Sanctions Risk to Iran Supplies
By Feiwen Rong
Aug. 31 (Bloomberg) -- Gold rose to the highest in four days on concern the United Nations may impose sanctions against Iran next month.
The UN gave Iran, the world's fourth-biggest oil producer, until today to end its uranium enrichment or face economic sanctions, increasing the attraction of gold as a safe haven and adding to pressure on oil prices, which have risen 15 percent this year. Gold has gained 20 percent since Dec. 31.
``Gold's rise obviously has a bit to do with what's happening in oil,'' Jonathan Barratt, head of foreign exchange and precious metals at Tricom Futures Pty, said in a phone interview from Sydney. ``We've got geopolitical concerns with the deadline approaching in Iran and supply disruption in Nigeria.''
Gold for immediate delivery rose as much as $1.15, or 0.2 percent, to $620.42 an ounce. It traded at $619.95 at 10:11 a.m. Singapore time.
Officials from the Security Council will meet next week to word a sanctions resolution, U.S. State Department spokesman Sean McCormack said yesterday. Crude oil for October delivery rose 0.9 percent to $70.63 a barrel in after-hours electronic trading on the New York Mercantile Exchange.
Gold for December delivery rose as much as $2.10, or 0.3 percent, to $628.20 an ounce on the Comex division of the New York Mercantile Exchange. They traded at $627.10 at 9:34 a.m. Singapore time in after-hours trading.
A futures contract is an obligation to buy or sell a commodity at a set price for delivery by a specific date.
