Feb. 21 (Bloomberg) -- Gold advanced the most in more than three weeks as agreement on a bailout package for Greece boosted prospects for raw-material use and political tension in the Middle East increased demand for a haven.
The Standard & Poor’s GSCI Spot Index of 24 commodities touched 700.79, the highest since July 27, as Greece won a second bailout in a deal with euro-area leaders. Iran pledged to press on with its efforts to develop nuclear plants as the International Atomic Energy Agency started a second day of meetings in Tehran.
“Gold is rising along with other commodities on the Greece headlines,” Fain Shaffer, the president of Infinity Trading Corp. in Medford, Oregon, said in a telephone interview. “Also, the safe-haven appeal is increasing because of the developments in Iran.”
Gold futures for April delivery rose 1.9 percent to settle at $1,758.50 an ounce at 1:55 p.m. on the Comex in New York, the biggest jump for a most-active contract since Jan. 25. U.S. markets were closed yesterday for the Presidents Day holiday.
Gold has climbed 12 percent this year.
“Long-term forward-looking gold investors are not convinced that the steps are big enough to solve the Greek problem,” Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland, said in an e-mail. “It is a short- term solution.”
Silver futures for May delivery surged 3.7 percent to $34.50 an ounce, advancing the most since Jan. 20. This year, silver has gained 24 percent, the most among precious metals.
On the New York Mercantile Exchange, palladium futures for March delivery climbed 3.3 percent to $710.75 an ounce, advancing the most this year. Platinum futures for April delivery gained 3.1 percent to $1,684.90 an ounce, the biggest rise since Nov. 4, 2010.
--Editors: Thomas Galatola, Patrick McKiernan
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