Gold futures rebounded from the biggest weekly drop in five months as the dollar’s decline boosted the appeal of the metal as an alternative investment.
The greenback weakened to a six-week low against the euro after Greece offered to buy back bonds. China’s manufacturing index rose to a seven-month high, data showed on Dec. 1. Precious metals and energy will lead commodities higher in the next 12 months, Goldman Sachs Group Inc. said in a report dated Nov. 30.
“We’re seeing more of a ‘risk-on’ trade with the Greek debt news and the weaker dollar,” Adam Klopfenstein, a senior market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “It’s also a macro-based rally in commodities on strength in China and Goldman reiterating its bullish views.”
Gold futures for February delivery rose 0.5 percent to settle at $1,721.10 an ounce at 1:39 p.m. on the Comex in New York. Last week, the price tumbled 2.2 percent, the most since late June.
Goldman Sachs forecasts a 7 percent return from commodities in the next 12 months, including an 8 percent gain for precious metals. The Standard & Poor’s GSCI Spot Index of 24 raw materials pared gains from the highest in six weeks.
Holdings in exchange-traded products backed by the metal climbed 2.3 metric tons to a record 2,621.7 tons on Nov. 30, data compiled by Bloomberg show. The U.S. Mint sold 136,500 ounces of American Eagle gold coins last month, the highest since July 2010.
Silver futures for March delivery advanced 1.4 percent to $33.759 an ounce on the Comex.
On the New York Mercantile Exchange, platinum futures for January delivery increased 0.6 percent to $1,613.80 an ounce.
Palladium futures for March delivery climbed 0.4 percent to $691.25 an ounce, the highest settlement since Sept. 14.
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