Gold rose slightly today against a weaker dollar and a background of thin holiday trading.
(1888PressRelease) December 28, 2011 - MIAMI, FL - The overall rise in the price of gold since the beginning of the year has been around 12%, confirming the 11th year of straight gains in the present bull run, although the last quarter saw a loss. For the time being, gold seems range bound, trading between $1600 and $1650.
Physical demand from India, the world's largest importer of gold, will remain sluggish through mid-January as the period from mid-December to mid-January in the Hindu calendar, Khar Mass, is considered an inauspicious time for buying or starting any new venture. Additionally, the exchange rate is making it very expensive to buy gold in rupees. However, the Lunar New Year, which falls on January 23 this year, is a time for giving gifts of gold and gold coins, so demand is expected to spike after mid-January.
"The Lunar New Year generally provokes strong physical demand for gold from Asia," says Bill Hionas of Pan American Metals of Miami. "No one can be certain what direction gold will move in after the holidays; it may depend on economic data coming out of the US and also what is happening in Europe. Assuming that current economic conditions continue, there should be increased demand for gold bullion as a safe haven for investors."
Traditionally, the last trading week of the year is aberrant, not reflecting any true trend.
Pan American Metals of Miami, LLC is a group of traders, investors and account executives that combines many years of experience to help clients invest in bullion. PAMM provides an individual investment service and is based in Miami, Florida for convenient access to both North and South American investors.