Gold Records 12th Straight Annual Advance: Commodities at Close

The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 0.3 percent to settle at 646.58 at 4 p.m. in New York, led by metals.

The UBS Bloomberg CMCI gauge of 26 prices advanced 0.3 percent to 1,578.74.

PRECIOUS METALS

Gold rose, capping the longest run of annual gains since at least 1920, on renewed concern that central banks from Europe to China will take steps to spur economic growth and as U.S. leaders near a budget deal.

Investors from John Paulson to George Soros have a $140.6 billion bet via near-record holdings in gold-backed exchange- traded products after the Federal Reserve said Dec. 12 it would buy $45 billion of Treasury securities a month as of January, adding to $40 billion a month of mortgage-debt purchases.

On the Comex in New York, gold futures for February delivery gained 1.2 percent to $1,675.80, while prices for immediate delivery jumped as much as 1.5 percent. The run of 12 straight annual gains in the spot market is the longest since at least 1920.

Silver futures for March delivery rose 0.8 percent to $30.227 an ounce on the Comex.

On the New York Mercantile Exchange, platinum futures for April delivery added 1.4 percent to $1,542.40 an ounce, the biggest gain for a most-active contract since Nov. 23. Palladium futures for March delivery rose 0.4 percent to $703.35 an ounce.

BASE METALS

Copper futures rose the most in four weeks as manufacturing gains in China, the world’s largest consumer of industrial metal, added to signs of economic optimism.

On the Comex, copper futures for March delivery advanced 1.8 percent to $3.6525 a pound, the biggest increase contract since Nov. 29.

On the London Metal Exchange, copper for delivery in three months rose 0.6 percent to $7,931 a metric ton ($3.60 a pound). Aluminum, tin and zinc climbed, while nickel and lead fell.

CRUDE OIL

Crude oil rose on optimism that negotiators will reach a U.S. budget deal that would avert more than $600 billion of tax increases and spending cuts that threaten economic growth.

On the Nymex, oil futures for February delivery increased 1.1 percent to $91.82 a barrel. Prices dropped 7.1 percent this year.

Brent oil for February settlement climbed 0.4 percent to $111.11 a barrel on the London-based ICE Futures Europe exchange.

Morgan Stanley bought a cargo of North Sea Forties crude from BP Plc at the highest price in more than a week, while Royal Dutch Shell Plc and Total SA placed unsuccessful bids for cargoes.

Supplies from Angola will increase this month while output from Nigeria will fall, according to researcher JBC Energy GmbH.

OIL PRODUCTS

Gasoline advanced, capping the fourth straight annual increase, on speculation that negotiators will reach a last- minute U.S. budget deal, helping to prevent a drop in demand for the motor fuel.

On the Nymex, gasoline futures for January delivery added 0.4 percent to $2.812 a gallon, gaining 4.7 percent in 2012.

Heating-oil futures rose less than 0.1 percent to $3.0451 a gallon.

NATURAL GAS

Natural gas fell as the outlook for mild January weather signaled lower U.S. demand.

On the Nymex, gas futures for February delivery dropped 3.4 percent to $3.351 per million British thermal units. This year, the price climbed 12 percent, the first gain since 2007.

Average within-day U.K. gas rose 5.9 percent this year as demand for LNG in Asia limited shipments available for European terminals.

The contract dropped 1.6 percent to 60.5 pence a therm at 1:43 p.m. London time, which would be the lowest close since Oct. 2, according to broker data compiled by Bloomberg. The average this year was 59.75 pence, compared with 56.4 pence in 2011. Today’s price is equivalent to $9.79 per million Btu.

SOFT COMMODITIES

Orange-juice futures tumbled the most in 11 months as concerns eased that adverse weather will curb output in Florida, the world’s second-biggest citrus grower.

On ICE Futures U.S. in New York, orange juice for March delivery retreated 7.2 percent to $1.1735 a pound, the biggest drop since Jan. 11.

Arabica-coffee futures for March delivery dropped 2.1 percent to $1.438 a pound.

Cocoa futures for March delivery slid 0.6 percent to $2,236 a ton, falling for the 10th straight session, the longest slump since December 2011.

Raw-sugar futures for delivery in March rose 0.5 percent to 19.51 cents a pound.

Cotton futures for March delivery climbed 0.6 percent to 75.14 cents a pound.

GRAINS, OILSEEDS

Wheat futures fell on speculation that farmers increased sales amid concern the U.S. budget dispute will damp the economy and erode commodity demand in 2013.

On the Chicago Board of Trade, wheat futures for March delivery fell 0.1 percent to $7.78 a bushel.

Soybean futures for March delivery dropped 0.6 percent to $14.095 a bushel.

Corn futures for March delivery gained 0.6 percent to $6.9825 a bushel.

LIVESTOCK

Hog futures fell to the lowest in almost two weeks after a report showed the U.S. sow herd unexpectedly increased, signaling more pork supplies.

On the Chicago Mercantile Exchange, hog futures for February settlement fell 0.8 percent to 85.725 cents a pound. Earlier, the price touched 84.85 cents, the lowest since Dec. 18.

Cattle futures for February delivery declined 1 percent to $1.323 a pound, the biggest decline since Nov. 30.

Feeder-cattle futures for March settlement slipped 0.3 percent to $1.54275 a pound.

To contact the reporter on this story: Thomas Galatola in New York at tgalatola@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

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