Guangzhou, China, January 02, 2012 --(PR.com
)-- On Friday December 30, the final trading day of the 2011, the benchmark gold contract for February delivery rose 25.8 U.S. dollars and closed at 1,566.9 dollars an ounce, up 1.74 percent. For the calendar year, gold prices have risen by 145.38 dollars an ounce, or up 10.19 percent. But after the major correction in the fourth quarter, growth in prices is lower than the 29.62 percent gained in 2010.
In early 2011, gold prices rose steadily, carrying on the momentum of the bull market in the previous year. As the political uncertainty in the Middle East and North African countries continued, investors flocked to safe-haven assets including gold. As oil prices surged as well, investors were also buying up gold as a hedge against inflation. The increasing sovereign debt crisis in Europe also reinforced risk-aversion among investors.
Since mid-year, investors have been increasingly worried about a potentially destabilizing default by the U.S. Fed on its debt as its leaders were engaged in bitter partisan fight over increasing the country's borrowing limit. Such strong stimuli fueled the risk-aversion tendency in the market to the peak. Investment funds poured into the gold market, pushing gold prices to an all-time high of $1,923 per ounce on September 6.
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