Gold prices posted the biggest weekly gain in 18 months as turmoil in European currency markets spurred demand for the metal as a haven.
Aggregate open interest in gold futures on Jan. 15 surged 5.6 percent, the most since October 2009, following the Swiss central bank’s surprise move to abandon the franc’s cap against the euro. Assets in the biggest exchange-traded product backed by the metal rose the most since August 2011.
Gold climbed to a four-month high on Friday, while call options for the right to own February futures at $1,300 an ounce soared sevenfold in two days. Signs of cooling expansion in Europe boosted speculation that policy makers will add to stimulus, increasing demand for a store of value. Muted inflation and stagnant foreign economies may prompt the Federal Reserve to delay an increases in interest rates.
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