London: Gold on Friday extending the biggest quarterly gain in more than two years by adding 0.2 percent on speculation central banks' stimulus will spur investor demand.

The precious metal rose by 0.2 percent to USD 1,780.80 an ounce. Prices are up 11 per cent since the end of June, set for the biggest quarterly gain since June 2010.

Silver also rose 0.4 per cent to USD 34.78 an ounce for a 27 percent surge this quarter, the most since the end of 2010.

Prices gained this month as the Federal Reserve announced a third round of quantitative easing and as central banks from Europe to China to Japan pledged more action.

Commodities gained on Friday on optimism Spanish and French measures to reduce budget deficits will help resolve the region's debt crisis.

Holdings in gold-backed exchange-traded products rose 2 tonnes to 2,544.3 tonnes. They reached a record 2,551.9 tonnes on September 25. Bullion priced in euros and Swiss francs set all-time highs yesterday and peaked earlier this month in rupees.


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