Gold may rise in London as concerns about Europe’s debt crisis and escalating tensions between North and South Korea boost demand for a protection of wealth.

Ireland had its long-term sovereign rating cut two steps to A from AA- by Standard & Poor’s, which cited concern about borrowing by the government as the nation seeks aid from the International Monetary Fund and European Union. The United Nations called for talks with North Korea over its shelling of a South Korean island. Gold reached a record $1,424.60 an ounce on Nov. 9.

“Support may continue to be offered by concerns over North and South Korea, worries over European sovereign debt,” Tom Pawlicki, an analyst at MF Global Holdings Ltd. in Chicago, said in a report. “Pressure will come from stronger economic data.”

Immediate-delivery bullion added $3.03, or 0.2 percent, to $1,379.43 an ounce at 9:17 a.m. in London. Prices swung between a gain of 0.3 percent and a loss of 0.4 percent. The metal for February delivery was 0.1 percent higher at $1,380.90 on the Comex in New York.

Ireland’s Finance Minister Brian Lenihan will today lay out a four-year deficit-cutting program as the government races to finish talks on aid with the IMF and the European Union.

North Korea yesterday fired artillery shells at the South Korean island of Yeonpyeong near the disputed border between the two countries, killing two soldiers and two civilians and setting houses ablaze.

‘Investors Are Jittery’

The UN Command proposed to North Korea’s military talks between senior officers over the shelling, adding in an e-mailed statement that it will investigate the incident. UN Commander Walter Sharp, who is also chief commander of the U.S forces in South Korea, condemned North Korea’s attack as “threatening to the peace and stability of the entire region.”

“People increasingly prefer safer assets,” said Park Jong Beom, a trader at Tong Yang Futures Trading Co. in Seoul. “Investors are jittery as Europe is still in trouble and now the Korean tension is there. The safe-haven demand will be around for the time being.”

Still, German business confidence unexpectedly rose to a record high in November, the Munich-based Ifo institute said today. Government reports due today may show consumer spending and orders for durable goods in the U.S. rose last month, according to economists’ forecasts

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