Gold Extends Biggest Advance in 26 Years on Demand for Haven

About $3.6 trillion of market value has been erased from global stocks this week, triggered by the bankruptcy by Lehman Brothers Holdings Inc. In March, gold reached a record as the U.S. steered JPMorgan Chase & Co. to buy Bear Stearns Cos. Investors often consider gold a store of value during times of financial uncertainty.

''It's pretty clearly a flight to safety,'' Toby Hassall, an analyst at Commodity Warrants Australia, said by phone from Sydney. Gold may reach $900 an ounce by week's end, he said. ''As long as sentiment continues to worsen, it's likely we'll see upward pressure on gold prices.''

Gold for immediate delivery rose 0.6 percent to $868.65 an ounce at 9:20 a.m. in Sydney. The metal jumped 11 percent yesterday, its biggest gain since Sept. 3, 1982. Silver rose 1.7 percent to $12.16 an ounce.

Central banks in the Philippines and Venezuela yesterday said they may buy gold.

Gold for immediate delivery had added $103.15 an ounce this week, while futures are up $106.

''When you see financial contagion creeping through the system people are not confident and are going to gold,'' said Jonathan Barratt, managing director of Commodity Broking Services Ltd. in Sydney. ''It's perceived to be safer.''

Gold futures for December delivery rose 2.3 percent to $870.30 an ounce in after-hours trading on the Comex Division of the New York Mercantile Exchange at 9:23 a.m. Sydney time. Bullion futures gained 9 percent yesterday, the biggest gain in 9 years.

       aluminum tube            aluminum fin strip     copolymer coated  aluminum tape       kitchen cabinet                      zinc strip