Gold futures rose for the first time in three days as signs that money supplies will increase in Europe and Asia revived investor demand.
Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by the metal, climbed 0.5 percent last week, the most since August. Money managers raised their bullish wagers for a third straight week, the longest expansion since July, government data showed Dec. 5.
While European Central Bank policy makers refrained from increasing asset purchases at a meeting last week, President Mario Draghi pledged to assess the need for more stimulus early next year. China last month lowered interest rates to spur economic growth, while Japan has expanded its unprecedented stimulus program.
Gold futures for February delivery climbed 0.4 percent to settle at $1,194.90 an ounce at 1:56 p.m. on the Comex in New York. The price extended gains in electronic trading after the close as the dollar fell against the euro and U.S. equities dropped as much as 1 percent.
Source : Bloomberg