WGC: Gold fundamentals remain robust; 2011 price rises in many currencies

The support for Gold demand to continue from various sectors such as investment, central banks, jewelry and technology after the metal rose more against most global currencies than compared to the U.S. dollar last year, reported World Gold Council.

According to WGC, gold rose 9% in dollar terms in 2011, based on the London fixing, and fared even better in most other currencies.

“Not surprisingly, the euro depreciated the most amongst developed countries relative to the U.S. dollar, on the back of continuing sovereign-debt issues, pushing gold prices up 11.6% in local terms during the year,” said the WGC, a market-development organization for the Gold industry. Gold rose a more modest 3.6% against the Japanese yen as this currency was one of the few to strengthen against the dollar.

“In developing markets, on one hand, the Turkish lira, Indian rupee and South African rand depreciated the most and gold’s prices rose by approximately a third. On the other hand, as the Chinese yuan started to take a more important role in the international monetary system, it has experienced a consistent appreciation since June 2010. In turn, gold rose by a more modest 4.3% in local currency terms during the year.” There was an increase in volatility for gold. The metal remained a foundation asset in portfolios, the WGC added. – CommodityOnline

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Posted by admin on Jan 24 2012. Filed under Gold predictions. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry