Gold rises as China's purchases increase

Gold futures increased on Tuesday continued to rally towards the strongest level since November after purchases from China accelerates extending last year's consumption and as investors expect further cuts of the U.S. stimulus measures. Bullion for settlement in February gained 1% to $1,287.81 an ounce, the most since November 18, and was last traded at $1,283.05 as of 1:03 p.m. Singapore time.