Jan. 10 (Bloomberg) -- Commodities rose to their highest in more than 11 weeks, led by energy and metals, amid optimism that an economic recovery in China will boost demand. Gold advanced to a one-week high.
The Standard & Poor’s GSCI Index of 24 raw materials gained to the highest level since Oct. 22, as aluminum advanced as much as 2 percent and crude climbed to the highest level in more than three months. China’s exports jumped 14.1 percent last month, compared with a 5 percent median forecast in a Bloomberg News survey. The nation is the world’s biggest user of industrial metals and energy.
“From a broad commodity perspective, what is good is the fact that China’s exports have picked up quite significantly in December and well above expectations,” Walter de Wet, head of commodities research at Standard Bank Plc, said by phone from Johannesburg today. “There is no doubt that things are stabilizing in China.”
Oil for February delivery gained as much as $1.60 to $94.70 on the New York Mercantile Exchange, the most since Sept. 19. Saudi Arabia cut crude production in December to a 19-month low, according a Gulf official with knowledge of the kingdom’s energy policy who asked not to be identified because the information is confidential.
Aluminum for three-month delivery on the London Metal Exchange advanced for a fourth day, gaining 1.5 percent to $2,105.50 a ton. Usage of the lightweight metal in China will rise 11 percent this year, aided by stimulus spending, Alcoa Inc., the biggest U.S. producer, said this week.
Gold advanced to a one-week high after European Central Bank President Mario Draghi said economic weakness in the region will continue, boosting speculation that policy makers will do more to revive growth.
To contact the editor responsible for this story: Stephen Voss at email@example.com