Gold prices held steady on Friday, after optimism that Greece may soon secure an urgently needed bailout helped the metal recover from a one-week low hit in the previous session.
Wild price swings caused by a volatile rupee sapped Indian buying interest in gold in the fourth quarter of 2011, with imports well short of expectations and no pick up expected this year, dropping it behind China for the first time.
Barrick Gold Corp., the world's largest gold mining company, reported flat fourth-quarter net profit as higher costs offset increased production and higher selling prices.
Gold prices fell on Thursday as the euro slid to a three-week low versus the dollar, pressured by news that European officials considered delaying a bailout package for Greece which fuelled fears the heavily indebted nation could face a chaotic default.
Gold demand struck 14-year highs in 2011, driven by record investment, buying in China, which could overtake India this year as the world's top consumer, and central bank purchases, which hit their highest in at least 40 years, according to a report on Thursday.
Hedge fund manager and long-time gold bull John Paulson cut his gold ETF bullion holdings by about $600 million in the fourth quarter, a second straight reduction that was likely driven by client redemption needs as he remained upbeat on the metal.
DRDGold, South Africa's fourth-largest gold producer, said on Tuesday that second-quarter earnings climbed 65 percent as it continued to cash in on the higher gold price.
Gold prices followed crude oil and global stocks lower Tuesday after ratings firms cut the credit ratings of several European nations and banks and warned that more reductions were likely.
Barrick Gold Corp. (NYSE:ABX), the world's largest gold producer, is expected to report an increase in 2011 earnings on strong gold prices and controlled costs.
Gold prices climbed on Monday as news that Greece's parliament had approved an austerity bill needed to release a second round of bailout funds lifted the euro, while platinum rose back towards a three-month high as supply issues flared up.
Canada's Barrick Gold, the world's largest gold producer, plans to sell its 20 percent stake in Russia's Highland Gold, pulling out of one of the world's most promising - but also toughest - gold frontiers.
Gold prices rose Monday after Greek lawmakers accepted terms of a deeply unpopular austerity plan that Eurozone leaders demanded as the price for financially rescuing the debt-choked nation.
Gold prices fell back Friday, just hours after an apparent deal between debt-choked Greece and potential Eurozone lenders reinvigorated hopes the nation would not be forced to default on its loans.
Gold prices rose 1 percent on Thursday as the euro rallied to a fresh two-month high against the dollar after Greece clinched a deal with European Union and IMF leaders needed to avoid a messy default.
Gold edged up along with crude oil and the euro on expectations the Greek prime minister's presence in Brussels Thursday signals a likelihood his nation will receive desperately needed bailout money.
Gold fell on Wednesday as technical resistance prompted investors took profits after the previous session's rally and on moreuncertainty about Europe's economy.
Gold prices hovered in a narrow range Wednesday, with little support from crude oil prices or the euro and uncertainty about whether Greece will accept slightly easier bailout terms from Eurozone leaders, known collectively as the troika.
Gold prices have been too volatile to play a reliable role as a hedge against inflation, a study of financial assets over the past 112 years showed on Tuesday.
Gold prices rose 1 percent on Tuesday as expectations that a Greek rescue deal will be completed drove the dollar down sharplyagainst the euro.
Gold broke a two-day losing streak on Tuesday on light volume as the euro rose, but sellers matched buyers to keep the price in a narrow range.
A political impasse over a new bailout for Greece dominated the tone of trading in risky assets Monday, as U.S. investors - whose attention had been on U.S. economic developments the week prior - once again focused on the Continent.
The current gold rally is expected to continue due to a combination of monetary and fiscal influences, HSBC analyst James Steel reported to investors Sunday.
