Gold climbed the most in three weeks as commodities held declines, heading for the longest losing streak since January, after the European Central Bank unveiled measures to spur the economy and fight deflation.
The Standard & Poor’s GSCI gauge of 24 raw materials fell 0.4 percent for a fifth day of declines, lead by soybeans and wheat. Gold rallied as much as 1.1 percent to $1,257.73 an ounce in London, the biggest gain since May 14, as some traders closed bets on falling prices. Copper also fell.
The ECB today cut all three main rates and became the first major central bank to charge fees on deposits. The central bank’s president, Mario Draghi, said the package of measures to bolster the economy also included targeted longer-term loans, and officials will also start work on purchases of asset-backed securities.