Sept. 21 (Bloomberg) -- 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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