Gold futures rose, capping a quarterly increase, as the US dollar’s decline bolstered demand for the precious metal as an alternative investment. Platinum had the biggest three-month gain since 2009.
The greenback fell to four-week low against a basket of major currencies as European leaders agreed to increase rescue funds for indebted nations in region. The Standard & Poor’s GSCI Spot Index of 24 raw materials climbed as much as 1.2 per cent.
“The ‘risk-on’ mentality is back, and people are piling into commodities, including gold,” Fain Shaffer, the president of Infinity Trading Corp. in Medford, Oregon, said in a telephone interview. “The dollar’s weakness is always supportive.”
Gold futures for June delivery rose 1 per cent to $US1,671.90 an ounce at 1:38 p.m. on the Comex in New York. The metal climbed 6.7 per cent this quarter.
In the fourth quarter, the metal fell 3.4 per cent, the first drop in three years. Gold has gained 17 per cent in the past 12 months.
On the New York Mercantile Exchange, platinum futures for July delivery climbed 1 per cent to $US1,644.10 an ounce. In the first quarter, the metal gained 17 per cent, the most in three years.
Silver futures for May delivery increased 1.5 per cent to $US32.484 an ounce on the Comex. In the first quarter, the metal jumped 16 per cent following three straight declines.
Palladium futures for June delivery advanced 1.5 per cent to $US654.10 an ounce on the Nymex. In the quarter, the price dropped 0.3 per cent.
Bloomberg
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