Gold Heads for Longest Run of Weekly Gains Since February

Gold futures rose for the fifth straight week, capping the longest rally since February, as monetary stimulus by central banks boosted demand for the metal as a store of value.

The Federal Reserve last week announced a third round of quantitative easing to bolster the U.S. economy, and central banks in Europe and Japan have pledged steps to spur growth. Grains led commodities into a bull market last month, triggering concerns that consumer prices will increase, and analysts from Bank of America Corp. to Deutsche Bank AG forecast that gold will rise to a record by next year.

“People are moving to gold as it is evident that the governments have to inject a lot of liquidity into the system to boost growth,” Pratik Sharma, a fund manager at Miami-based Atyant Capital, said in a telephone interview. “The inflation concerns are creeping back.”

Gold futures for December delivery increased 0.4 percent to settle at $1,778 an ounce at 1:40 p.m. on the Comex in New York. Prices rose 0.3 percent this week, the fifth straight gain and the longest rally since early February. Earlier, the metal reached $1,790, the highest since Feb. 29. The commodity climbed to a record $1,923.70 on Sept. 6, 2011.

Silver futures for December delivery fell 0.1 percent to $34.638 an ounce in New York.

On the New York Mercantile Exchange, platinum futures for October delivery added 0.8 percent to $1,637.60 an ounce. Palladium futures for December delivery gained 1.6 percent to $671.55 an ounce.

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