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Prices Attract Gold Buyers in Final 2011 Trading

Release Date: 
Friday, December 30, 2011

Gold rebounded strongly on Friday as lower prices and a weaker dollar spurred demand on the final trading day of the year. The price of gold was $1573.70 per ounce at 6:51 a.m. Pacific Time on the New York Spot Market with silver at $28.34 per ounce.

"January and February are usually good months in India, and a lower gold price might attract some buyers," said Marc Ground, a commodities strategist at Standard Bank Plc in Johannesburg. According to Ground, jewelers may be attracted to the lower prices as they restock and prepare for the Indian wedding season.

Economist Dennis Gartman, editor of the Gartman Letter, who has been neutral on gold since mid-November is "about to become bullish," he wrote in his investment letter. Gold is currently on track to notch its eleventh straight annual gain.

(Sources: "Gold Rebounds, Heads for 11th Annual Gain," Bloomberg, December 30, 2011; "PRECIOUS-Gold up but limps to 2012 with 4th-quarter loss," Reuters, December 30,2011)

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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