Gold climbs on Chinese credit outlook July 6, 2011 - 6:51AM
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Gold climbed the most in five weeks as a deteriorating credit outlook for China's banks boosted demand for the precious metal as a store of value.
Moody's Investors Service said Chinese bank loans to local governments are $US540 billion more than the national auditor's estimates. Shares of lenders fell on concern a drop in property prices may trigger defaults. Gold futures dropped 3.7 per cent in the previous two weeks on Greece's bailout.
"The crack in the armor out of China is keeping gold well bid," said Adam Klopfenstein, a senior market strategist at Lind-Waldock, a broker in Chicago.
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