December 30, 2011
Gold rebounded strongly as lower prices and a weaker dollar spurred demand on the final trading day of the year and kept prices on track to notch an eleventh straight annual gain.
“January and February are usually good months in India, and a lower gold price might attract some buyers,” said Marc Ground, a commodities strategist at Standard Bank Plc in Johannesburg. According to Ground, jewelers may be attracted to the lower prices as they restock and prepare for the Indian wedding season.
Economist Dennis Gartman, editor of the Gartman Letter, who has been neutral on gold since mid-November is “about to become bullish,” he wrote in his investment letter.
(Sources: “Gold Rebounds, Heads for 11th Annual Gain,” Bloomberg, December 30, 2011; “PRECIOUS-Gold up but limps to 2012 with 4th-quarter loss,” Reuters, December 30,2011)