Gold rose on speculation that a worldwide economic recovery will boost demand for precious metals and other commodities.

Copper surged as much as 2.1 per cent to a record in London on demand from China, the world's biggest metal user. The Thomson Reuters/Jefferies CRB Index of 19 raw materials gained as much as 0.9 per cent. Gold has dropped 4 per cent this year after climbing 30 per cent in 2010.

"Industrial metals are leading gold up," said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago.

Gold futures for April delivery rose $US4.70, or 0.3 per cent, to settle at $US1365.10 an ounce on the Comex. The metal climbed to a record $US1432.50 on December 7.

A rally above $US1370 may trigger more buying, based on technical analysis, McGhee said.

Silver futures for March delivery rose 53.9 US cents, or 1.8 per cent, to $US30.534 an ounce.

Palladium futures for March delivery rose $US18.10, or 2.2 per cent, to $US832.80 an ounce on the New York Mercantile Exchange.

Silver and palladium have almost doubled in the past 12 months.

Platinum futures for April delivery rose $US14.10, or 0.8 per cent, to $US1827.60 an ounce on the Nymex.

Source: http://www.smh.com.au/business/markets/gold-gains-as-economic-recovery-boosts-demand-20110215-1atxx.html