US gold futures rose more than 2 percent on Monday, rising above $760 an ounce, as China's government spending stimulus plan triggered a broad-based commodity rally and stirred inflation worries. December gold was up $18.90, or 2.6 percent, at $753.10 an ounce on the COMEX division of the New York Mercantile Exchange at 10:11 am EST (1511 GMT).
Range $738.40 to $768.90. Lack of selling by funds and central banks amid light volume, said Jonathan Jossen, COMEX gold options floor trader. Gold due for a bounce after a sharp drop of the entire commodity complex, but low volume was not an encouraging sign and futures could erase early gains on Monday, added Jossen.
China's moves to bolster economically sensitive base metals and precious metals because of inflation concerns, said dealers. Commodities rose across the board, with the Reuters/Jefferies CRB index up 2.2 percent, led by crude oil's $2 per barrel gain. COMEX gold futures open interest and noncommercial net longs dropped further last week, signalling lower investor appetite for commodities, according to CFTC.
COMEX estimated 10 am volume at 64,605 lots, and options turnover at 3,388 contracts. Spot gold at $752.80, up 2.5 percent from Friday's close of $734.80. December silver up 42.70 cents, or 4.3 percent, to $10.390 an ounce. COMEX estimated 10 am volume at 8,377 lots. Spot silver at $10.38, up 4.4 percent from Friday's close of $9.94.
NYMEX January platinum up $19.90, or 2.3 percent, at $871.90 an ounce. Platinum, mostly used as an industrial metal for catalytic converters in cars, rebounded after last week's decline based on dismal global auto sales. Spot platinum fetched $858, up 2.2 percent from Friday's finish. December palladium eases 10 cents to $223.90 an ounce on profit taking. Spot palladium fetched $221.50, down 1.6 percent from its previous close.
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