Gold prices jumped the most in four weeks, climbing above $1,600 an ounce, after Europe’s leaders took steps to resolve the debt crisis, boosting the outlook for global growth and commodities demand. Silver also surged.
The euro climbed the most this year against the dollar after policy makers meeting in Brussels eased repayment rules for Spanish banks, relaxed conditions for possible aid to Italy and unveiled a 120 billion-euro ($152 billion) growth plan for the region’s economy. Gold has slumped 4 percent since March 30, the biggest quarterly drop in almost four years, as investors favored the dollar as a haven.
“Gold has benefited from Europe’s decision as the EU plan is a step forward, and people expect the flow of funds to get less complicated,” Carlos Perez-Santalla, a broker at Hoboken, New Jersey-based PVM Futures Inc., said in a telephone interview.
Gold futures for August delivery climbed 3.5 percent to settle at $1,604.20 at 1:40 p.m. on the Comex in New York, the biggest gain since June 1. The metal has advanced 2.6 percent in June, the first monthly gain since January.
The Standard & Poor’s GSCI Spot Index of 24 raw materials jumped as much as 5.9 percent.
Silver futures for September delivery jumped 5 percent to $27.612 an ounce, the biggest gain since Jan. 3.