NEW YORK (Bloomberg) Gold climbed for a third day, advancing above $900 an ounce as investors sought precious metals as a haven from financial market turmoil and as the dollar slumped.
Gold has jumped 16 percent in the past week as the dollar lost 4.8 percent against the euro amid the widening global credit crisis and on concern a U.S. proposal to buy $700 billion of troubled assets would widen the budget deficit.
"Recent events in the financial markets have raised the level of uncertainty, making gold more appealing as a safe haven asset," Merrill Lynch analysts led by Francisco Blanch, wrote in a report e-mailed Monday. "Once the immediate liquidity crisis subsides, the market should focus on the fiscal implications of the recent measures, putting heavy downward pressure on the U.S. dollar."
Bullion for immediate delivery gained 1.2 percent to $907.52 an ounce at 9:07 a.m. in Singapore. Silver for immediate delivery added 1.3 percent to $13.62 an ounce.