Jan. 12 (Bloomberg) -- Gold futures rose to a one-month high on the dollar’s drop and speculation that China may loosen monetary policy. Silver and platinum posted the longest rallies in 10 weeks.
The greenback slumped the most in six weeks against the euro, bolstering the appeal of precious metals as alternative investments. Spain sold almost twice the planned amount of debt at an auction today, easing European fiscal woes. Inflation in China cooled to a 15-month low, fueling speculation the government will take steps to boost the economy.
“The weakness in dollar helped gold,” Fred Schoenstein, a trader at Heraeus Precious Metals Management in New York, said in a telephone interview. “Speculation about credit easing in China is good news for gold and other commodities.”
Gold futures for February delivery advanced 0.5 percent to settle at $1,647.70 an ounce by 1:42 p.m. on the Comex in New York. Earlier, the metal reached $1,662.90, the highest for the most-active contract since Dec. 13.
The price also gained after closing above the 200-day moving average yesterday, according to UBS AG. Gold dropped below that measure on Dec. 14 for the first time in almost three years.
Silver and platinum rose for the fourth straight session, the longest rallies since late October.
On the Comex, silver futures for March delivery rose 0.8 percent to $30.124 an ounce.
On the New York Mercantile Exchange, platinum futures for April delivery rose 0.2 percent to $1,500.10 an ounce. Palladium futures for March delivery fell 0.7 percent to $641.25 an ounce.
--Editors: Patrick McKiernan, Steve Stroth
To contact the reporters on this story: Maria Kolesnikova in London at firstname.lastname@example.org; Debarati Roy in New York at email@example.com
To contact the editor responsible for this story: Steve Stroth at firstname.lastname@example.org