Nov. 29 (Bloomberg) -- Gold futures climbed for the second straight day amid a commodity rally after the dollar’s drop boosted the appeal of raw materials as alternative investments.
The Standard & Poor’s GSCI index of 24 energy, metal and agriculture prices rose as much as 1.6 percent as European finance ministers work on a bailout fund. The greenback dropped as much as 0.9 percent against a basket of major currencies.
“The strength in other commodities is helping gold,” Sterling Smith, an analyst at Country Hedging Inc. in St. Paul, Minnesota, said in a telephone interview. “The weaker dollar is also lending support.”
Gold futures for February delivery advanced 0.3 percent to settle at $1,718.90 an ounce at 1:57 p.m. on the Comex in New York. Yesterday, the price gained 1.5 percent, the most in two weeks.
Gold has climbed 21 percent this year, heading for the 11th straight annual gain. The price reached a record $1,923.70 on Sept. 6 as investors sought to diversify from equities and some currencies.
Silver futures for March delivery fell 0.9 percent to $31.95 an ounce on the Comex.
On the New York Mercantile Exchange, palladium futures for March delivery gained 0.5 percent to $584.25 an ounce. Platinum futures for January delivery rose 0.1 percent to $1,540.70 an ounce.
--Editors: Millie Munshi, Steve Stroth
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