Gold rises on European debt worries and the Chinese demand
Gold and silver rose on worries over inflation and European debt. The precious metals silver have surged over the last year as investors look for a hedge against inflation andcurrency woes.
EUROPEAN WORRIES: Spain and Portugal are both undertaking debt auctions this week. European finance ministers will discuss increasing the effective lending capacity of their financial rescue fund next week, as Portugal defied pressure to seek a bailout. Japan, following in the footsteps of China, promised to buy euro zone bonds this month to help steady the single currency.
OIL UP: Benchmark oil for February delivery climbed $1.86 to settle at $91.11 a barrel on the New York Mercantile Exchange.
Silver rose for a second session, up 1.7 percent on the day at $29.54 an ounce.. China's inflation raced to a 28-month high of 5.1 percent in November, and it is unclear whether policy steps the government is taking will calm prices, benefiting gold.