VINACHEM

Gold jumped the most in more thantwo months after European Central Bank President Mario Draghisaid economic weakness in the region will continue, boostingspeculation that policy makers will do more to revive growth.

“The economic weakness in the euro area is expected toextend into 2013,” Draghi said at a press conference in Frankfurt today. The metal climbed 7 percent last year, a 12thstraight gain, as central banks in Europe, the U.S. and Chinaincreased stimulus measures to boost economies.

“Draghi made it clear that Europe is still on the weakerside, and they will continue to lean towards accommodativepolicy,” Bill O’Neill, a partner at Logic Advisors in UpperSaddle River, New Jersey, said in a telephone interview.

Gold futures for February delivery gained 1.4 percent tosettle at $1,678 an ounce at 1:47 p.m. on the Comex in New York,the biggest jump for a most-active contract since Nov. 6.Earlier, prices touched $1,678.80, the highest since Jan. 3.

“A gradual recovery should start” later this year as ECBmeasures work their way through the economy, Draghi said.

The metal also rose after better-than-expected China tradefigures spurred optimism that demand for raw materials willincrease. Data this week showed China’s net imports of gold roseto a seven-month high in November, while volumes traded on theShanghai Gold Exchange jumped.

“The market was already trading higher on the Chinesedata, and Draghi’s statements gave it a further boost,” O’Neillsaid.

Silver futures for March delivery advanced 2.2 percent to$30.918 an ounce in New York, the third gain in four days.

On the New York Mercantile Exchange, platinum futures forApril delivery jumped 2.1 percent to $1,634.30 an ounce, thebiggest climb since Sept. 12.

Palladium futures for March delivery gained 2 percent to$702.20 an ounce, the second straight rise.