Gold rose over 1 percent to one-month highs on Wednesday, notching its longest stretch of gains in over two months, as investors once again sought the safety of bullion amid uncertainty toward the outcome to a key EU summit. Spot gold was up by 1.1 percent to $1,720.20 an ounce by 3:47 pm EDT (1947 GMT), having risen earlier to a one-month high of $1,726.50.
Bullish strategies related to the popular $1,700 calls also boosted underlying futures prices as COMEX November options are scheduled to expire at the end of the trading day. US gold futures for December delivery settled up $23.10 at $1,723.50 an ounce. Volume was slightly below its 30-day average after a slower trading pace in the last several weeks. On Tuesday, gold futures posted their largest turnover in a week at nearly 200,000 lots, or 20 million ounces, topping the 30-day rolling average by its widest margin in a month.
Gold rose above $1,700 an ounce for the first time in a month on Tuesday, notching one of its biggest rallies since 2008, fuelled by the gloomiest US consumer sentiment data in 2-1/2 years. This week so far has seen the largest two-day rise in global holdings of gold in exchange-traded products since early August, having increased by over half a million ounces to 67.768 million ounces. In other metals, silver was up 0.2 percent at $33.28 an ounce, echoing the strength in gold. Platinum was up 2.1 percent at $1,589.99 an ounce, while palladium was up 0.8 percent at $641.97.
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