Gold prices rose Thursday as Chinese purchases of physical gold and concerns Iran might spark a regional conflict by attempting to block the Strait of Hormuz offset concerns over a Eurozone recession.
Gold rose around 1 percent on Wednesday, breaking ranks with the euro as renewed hedge fund and technical buying put the precious metal on track for its fourth straight day of gains.
Gold was set for its strongest two-day rally in 2-1/2 months on Wednesday after an agreement in principle among European leaders to ban Iranian oil imports boosted the crude price and catapulted bullion to two-week highs.
India has made hallmarking gold jewelery mandatory, a senior government minister said on Wednesday, a move that could boost demand in the world's biggest gold market by taking care of quality worries.
Gold demand in India, the world's top consumer of the metal, was moderate on Wednesday as some jewellers chose to restock despite a price rise, dealers said Wednesday.
Gold prices opened higher Wednesday after opening the new year with a 2 percent rally on expectations of increasing Asian demand and support from the price of crude oil.
India has made hallmarking gold jewellery mandatory, a senior government minister said on Wednesday, a move that could boost demand in the world's biggest gold market by taking care of quality worries.
Gold demand in India rose on Friday, after prices fell 3 percent in the past two days, luring jewellers who began restocking and preparing for the wedding season beginning mid-January, dealers said.
Gold demand in India rose on Friday, after prices fell 3 percent in the past two days, luring jewellers who began restocking and preparing for the wedding season beginning mid-January, dealers said.
February gold hit a fresh six-month low of $1,523.90 per ounce overnight. Gold has been under intense pressure since it closed at $1,741.80 per ounce Dec. 7.
Gold prices began the final trading day of 2011 higher as bargain hunters took advantage of a recent downdraft that has left the metal with its first fourth-quarter loss in more than three years.
Gold prices fell on Thursday to their lowest level in nearly six months as tight liquidity in the euro zone forced investors to sell the metal, but strong U.S. economic data prompted a stock rally on Wall Street.
Gold prices Thursday tumbled to levels not seen since last summer, slashing what just weeks ago had been a gain of more than 20 percent this year to less than 10 percent.
Gold demand in India marginally improved on Thursday after prices fell to their lowest level in more than two months, but many buyers in the world's biggest importer were on the sidelines hoping for a steeper fall soon, dealers said.
Gold fell to a three-month low on Thursday as prices were weighed down by a firm dollar, while investors remained cautious ahead of an important Italian bond auction later in the day.
Gold prices plunged 1.7 percent Thursday on a strengthening dollar, which was rising ahead of a crucial auction of Italian bonds and fresh worries about Eurozone banks.
Asian stocks fell on Thursday, taking cues from weak U.S. and European shares, as players cut positions heading into the year end with an Italian debt auction later in the day keeping markets nervous.
The consensus among investment bankers and many traders is that gold prices will continue to climb in 2012.
A fall in overseas gold market failed to lift physical demand in India, the world's top consumer, as the depreciating rupee kept prices steady in the local market.
Gold prices declined Tuesday as investors sold ahead of the expiration of January options contracts in one of the lightest trading weeks of the year.
Gold prices in India eased on Tuesday tracking a similar trend overseas, but the drop wasn't enough to bolster demand in the world's top consumer.
Precious metals drifted lower Tuesday, with the biggest decline coming from palladium, which was down in early trading nearly 2 percent.
