Gold futures in New York climbed on Thursday after four explosions ripped through London at rush hour, killing dozens of people and wounding scores. Gold for August delivery on the New York Mercantile Exchange's Comex division stood $2.10 higher at $426.60 an ounce at 10 am EDT (1400 GMT).
"We're absolutely seeing safe-haven buying in the gold and silver today. I think it's going to be pretty choppy the rest of the day," a New York floor broker said.
Witnesses in London saw the top ripped off a double-decker bus near Russell Square close to King's cross train terminal, and three more apparently co-ordinated explosions caused carnage on packed subway trains as people went to work.
A previously unknown group claimed responsibility in the name of al Qaeda for the deadly blasts, but the claim could bot be verified immediately. British interior minister Charles Clarke called the explosions "terrorist attacks," and US President George W. Bush, speaking at the G8 summit, told reporters that "the war on terror goes on." Investors flocked to safe haven assets, with precious metals and fixed-income assets rising while equities declined. "There's trade buying pushing gold and silver up," the floor broker said.
"Morgan Stanley and HSBC have been pretty good buyers in here." "I think what happens with London accentuates how far this thing could try to rise," said James Quinn, commodities commentator at A.G. Edwards & Sons.
"The initial target is about $430 to $431, but you're probably going to see some sideways-type trade now."
Gold futures reached a 16-year high at almost $460 an ounce last December as investors looked for alternatives to a falling US dollar.
On Thursday, the euro and the Swiss franc gained while sterling fell against the dollar.
The euro last was up at $1.1932. Spot gold rose to $425.20/5.90 from $423.40/4.10 in New York previously.
On Thursday's fix in London was at $427.85. September silver was up 9.5 cents at $7.05 an ounce, trading from $6.96 to $7.09. Spot hit $6.99/7.02 an ounce, against $6.94/96 previously. London's fix was at $7.03. Nymex October platinum rose $3.50 to $864 an ounce.
Spot platinum last traded at $865/869. September palladium firmed $1.70 to $182 an ounce. Spot fetched $177/181.
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