U.S. gold and copper futures rose Friday as optimism about a Greek debt rescue package boosted investors' risk appetite across the board.

FUNDAMENTALS

* U.S. gold futures rose, set for their first weekly gain in three weeks, as growing confidence in a prompt deal between European leaders and Greece over its second bailout boosted investment buying.

* China's central bank, flush with foreign reserves, may be behind the surge in the country's gold imports late last year, but industry sources said the bank usually favours sourcing gold domestically over direct buying from overseas.

* Copper futures rose as hopes that Greece is now close to securing a second bailout boosted market sentiment but the metal was still on track for its second weekly loss running, reflecting scarce demand from top consumer China.

ECONOMY

* U.S. January Consumer Price Index (CPI) rose 0.2 percent, below economists' consensus estimate of a 0.3 percent gain.

MARKETS

* World shares rose and the euro gained on hopes that Greece would seal a long-awaited bailout to stave off debt default.

* Crude oil held steady on tension between Iran and the West over the Islamic Republic's nuclear program and optimism over Greece's bailout.

 Prices at 8:40 a.m. EST (1340 GMT)

LAST NET PCT YTD CHG CHG CHG US gold 1736.70 8.30 0.5% 10.8% US silver 33.610 0.240 0.7% 20.4% US platinum 1641.40 15.30 0.9% 17.3% US palladium 697.65 1.05 0.2% 6.3% US copper 379.85 0.75 0.2% 10.6%