Gold gains as price declines spur purchases

Gold lost 12% since rising to record 1,921.15 dollar.

Gold today advanced for a second day on speculation that Europe’s sovereign-debt crisis will not be contained,spurring demand for a protection of wealth.

The gold gained 7.70 dollar to 1,650.30 dollar an ounce. It rose 0.6 per cent and fell 0.4 per cent earlier. Silver rose 1 per cent to 30.74 dollar an ounce. The metal has lost 12 per cent since rising to record 1,921.15 dollar on September 6 as some investors sold it to cover losses in other assets.

German Chancellor Angela Merkel said Europe’s rescue fund will only be used as a last resort to save banks and that investors may have to take deeper losses as part of a Greek bailout.

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US Treasury Secretary Timothy F. Geithner will tell lawmakers today that the European financial crisis is increasing the risks to global growth.

The European Central Bank may cut borrowing costs at its meeting today as the region’s debt crisis,which has Greece on the brink of default,escalates. Moody’s Investors Service joined Standard and Poor’s in lowering Italy’s credit rating on concern the country’s debt won’t be reduced.

For Kolkata, the IMD has forecast mostly cloudy skies with light to moderate rain or thundershowers on most days through Panchami.

Unprecedented rain submerges Kolkata amidst Durga Puja preparations; train services hit

Cities46 min ago

At least two people were killed as Kolkata woke up to an inundated city on Tuesday morning after heavy overnight rainfall flooded streets, railway tracks, and Metro tracks. The downpour, which began late Monday night and continued past midnight, led to severe waterlogging across major arterial roads and residential areas, paralysing normal life.

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