Gold has received its biggest gain in nearly two weeks as of the 16th December 2011, with demand finally rebounding following a four day period where prices tumbled by more than eight percent.
The drop in gold had been described as a “buying opportunity” by UBS AG. The precious metal had experienced a slump with the United States dollar climbing in the midst of the escalating debt woes in Europe, while the Federal Reserve also declined to boost US stimulus measures.
Bullion refiner MKS Finance SA’s head of currency and metal refiner in Geneva, Bernard Sin, says that gold dropping a lot fast only encouraged people to then come in to buy, with an extraordinary degree of physical demand, almost certainly because people are still highly concerned about the situation in Europe.
Out of twenty one gold traders who have been surveyed by Bloomberg, ten are expecting the gold quote to continue to gain next week, although that is actually the smallest proportion of traders – less than fifty percent – to make such a prediction in nearly six months, since the twenty ninth of July. The gold quote has so far managed to fall as much as 17 percent over the course of the last three months from its record of one thousand, nine hundred and twenty three US dollars and seventy cents per ounce, which was recorded back on the sixth of September.
Palladium, platinum and silver have also posted their largest declines since the period which ended on the twenty third of September.
Silver futures for delivery in three months time in March rose by one point four percent to twenty nine thousand, six hundred and seventy one United States dollars an ounce on the Comex on the 16th of December. The precious metal fell by eight percent last week, and has dropped a total of four point one percent over the course of the whole year to date.
Platinum futures for delivery next month in January rose by zero point one percent to finish at one thousand, four hundred and seventeen United States dollars and thirty cents per ounce according to the New York Mercantile Exchange. The Platinum price fell by six point five percent during the course of the week.
Palladium futures for delivery in three months time in March fell by zero point eight percent to six hundred and twenty five United States dollars per ounce, tumbling eight and a half percent over the week.