XAUUSD Rallies to Two-Week High

by on January 2, 2013 7:10 am GMT

Spot gold rose to $1,683.95 an ounce gaining with other commodities as the dollar weakened, after U.S. lawmakers passed legislation averting income-tax rises for most workers, easing concern that a recovery in the world’s biggest economy may be derailed. Silver, platinum and palladium climbed.

The highest price since Dec. 18, and was at $1,683.80 at 2:25 p.m. Singapore time. Cash bullion ended 2012 at $1,675.35 an ounce, up 7.1 percent for a 12th year of gains. Silver, platinum and palladium added at least 0.3 percent.

Gold for February delivery rose 0.5 percent to $1,683.80 an ounce, after earlier losing as much as 0.3 percent on the Comex in New York. Futures rallied 7 percent last year for a 12th annual gain, as central banks joined investors in buying gold as a store of value and to diversify their reserves after the U.S. to China took steps to stimulate their economies.

Cash silver gained as much as 1 percent to $30.64 an ounce after erasing a 0.4 percent loss. The metal advanced 9 percent in 2012 as investors boosted holdings in exchange-traded products 9.4 percent to a record 18,916.92 tons on Dec. 28.

Spot platinum, the best performing precious metal in 2012, rose 0.5 percent to $1,549.50 an ounce. Palladium advanced 0.3 percent to $706.25 an ounce.