Feb. 9 (Bloomberg) -- Gold futures rose after Greek politicians agreed on austerity measures needed to qualify for a second international bailout, boosting prospects for the global economy and commodity demand.
Euro-region finance ministers will meet to discuss the 130 billion-euro ($173 billion) lifeline. The European Central Bank left its benchmark interest rate at a record low, and President Mario Draghi signaled the economic outlook has improved. Gold has climbed 28 percent in the past year as governments increased stimulus measures to shore up economies, increasing demand for the metal as a hedge against inflation.
“Draghi’s statements and low interest rates are indications of additions to liquidity, and that is very bullish for gold,” William O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, said in a telephone interview.
Gold futures for April delivery rose 0.6 percent to settle at $1,741.20 an ounce at 1:37 p.m. on the Comex in New York. The price reached a record $1,923.70 in September.
The Standard & Poor’s GSCI Spot Index of 24 raw materials rose to the highest since August, led by industrial metals and energy.
Consumer prices jumped 4.5 percent last month in China, the world’s largest gold-jewelry market, the government said today.
“China’s inflation remains elevated, and this will keep demand for gold strong,” said Cheng Xiaoyong, an analyst at Baocheng Futures Co., in Zhejiang, China.
Silver futures for March delivery gained 0.6 percent to $33.917 an ounce.
On the New York Mercantile Exchange, platinum futures for April delivery declined 50 cents to $1,667.60 an ounce. Palladium futures for March delivery fell 0.6 percent to $711.30 an ounce.
--With assistance from Glenys Sim in Singapore. Editors: Patrick McKiernan, Thomas Galatola
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