Gold gained for a second day after exchange-traded product holdings climbed to a record and speculation that European leaders are making progress in containing the debt crisis boosted the euro and equities. Palladium rallied to the highest level in more than two months.
Gold swung between gains and losses after rising the most in two weeks yesterday as investors weighed the prospect of the U.S. Federal Reserve maintaining asset purchases. Outflows from investor holdings slowed.
Gold climbed for a second day before a Federal Reserve policy meeting that may introduce more stimulus to boost the world’s largest economy. Platinum is poised for the longest rally in more than a year.
Copper climbed to trade near its highest price in almost 27 months as U.S. employment data added to signs the Federal Reserve may expand credit-easing measures to spur growth, weakening the dollar and boosting demand for alternative assets. Tin and nickel also advanced.
Iron ore prices may advance as much as 7.4 percent by the end of this year on speculation that further easing of curbs on lending in China, the biggest buyer, will boost demand, according to Commonwealth Bank of Australia.