Gold futures rallied today to the highest level in a week as the rising stocks and commodities signaled about expanding global economic growth, causing speculations that demand for raw materials will rise. The MSCI World Index of stocks climbed to the highest level since May 13 and Reuters/Jefferies CRB Index of 19 commodities headed for the biggest rally in almost a year. Crude oil jumped above $81 per barrel, while copper surged to the highest level in three months. An outlook for a seasonal increase of demand in such countries as India and Turkey also supported gold prices.
Euro’s rally prompted investors to sell the precious metal and buy the 16-nation European currency, limiting gains of gold. As McGhee of Integrated Brokerage Services said:
On the rallies, you’ve got some investors moving out of gold and back into euros.
December futures for gold delivery advanced $1.50 (0.1 percent) to $1,185.40 by 13:35 on COMEX, following the surge to $1,193.90. Speculators raised
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