Gold Prices Surge Nearly 2% After China's 4Q GDP Report

Gold prices jumped Tuesday after China reported fourth-quarter gross domestic product grew more than expected.

News that the world's second-largest economy grew 8.9 percent, more than the 8.7 percent economists polled by Reuters anticipated, was still the slowest rate of growth in more than two years.

The Chinese report boosted global markets' appetite for risk assets like stocks, which cut the value of the greenback. The Dollar Index was down against a basket of major currencies 0.9 percent to 81.05.

A weaker dollar makes gold less expensive for buyers who use non-U.S. currencies, spurring demand and lifting prices.

The Chinese fourth-quarter GDP report supercharged Chinese stocks, which were up more than three percent on Hong Kong's Hang Seng index. Other Asian shares rose as well, with Singapore's Straits Times gained 2.2 percent and Tokyo's Nikkei 225 up 1.1 percent.

European equities were also higher, as were U.S. stock futures.

Gold not only got a lift from a weaker dollar and rising stocks, but it found support from a broad-based commodities rally.

Copper surged for the second day in a row to a two-month high while crude oil jumped more than two percent.

Gold for February delivery rose $31.40 to $1,662.20, while gold for immediate delivery gained $16.60 to $1,662.93. Silver for March delivery climbed 87 cents to $30.39, while silver for immediate delivery was up 44 cents to $30.48.