By Kim Kyoungwha

April 27 (Bloomberg) -- Gold advanced to near the highest level in more than a week as Greece’s budget crisis prompted some investors to seek haven assets. Platinum rose to the highest since August 2008.

Gold for immediate delivery rose as much as 0.3 percent to $1,157 an ounce after climbing to $1,160.10 yesterday, the highest price since April 16. Today’s gain came even as the dollar strengthened against a basket of major counterparts; the precious metal and U.S. currency normally trade inversely.

“The price of gold has edged to just under $1,160 an ounce against the backdrop of Greece’s uncertain financial situation,” Eugen Weinberg, senior analyst with Commerzbank AG, wrote in a report. “Gold is thus showing its attraction as a safe haven once again.”

Bullion in euros and Swiss francs rose to records yesterday on concern that a European Union-led 45 billion euro ($60 billion) aid package for Greece won’t prevent the deficit crisis from spreading. German Chancellor Angela Merkel also warned that the bailout of the debt-stricken nation isn’t a done deal. Greece needs to repay 8.5 billion euros of bonds on May 19.

The Dollar Index advanced as much as 0.2 percent, ending a two-day decline, and Asian stocks fell today amid rising investor concern about Greece’s bailout plan. Gold traded little changed at $1,154 an ounce at 1:58 p.m. in Singapore.

Platinum touched a 20-month high of $1,756.25 an ounce after rising as much as 0.6 percent. Palladium gained as much as 1 percent to $570.50 an ounce, nearing the 25-month high of $572 reached on April 22.

Demand for the metals, used in auto catalysts, has strengthened as an economic recovery fuels vehicle sales and investments linked to exchange-traded products rose.

Societe Generale said in a report yesterday it raised its 2010 palladium estimate to $520 an ounce. The bank was forecasting $440 in an April 19 report.

Silver was little changed at $18.288 an ounce.

--Editors: Jake Lloyd-Smith, Richard Dobson

To contact the reporter on this story: Kyoungwha Kim in Singapore at Kkim19@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

source: http://www.businessweek.com/news/2010-04-27/gold-nears-one-week-high-as-greek-crisis-drives-haven-demand.html