, IncMarch 4, 2010 – Despite some pressure from the US dollar, gold prices continue to be close to the year-to-date high on strong demand. Just below the mid-January mark of $1,150 per ounce, gold prices were down $4.90 to $1,135.70 per ounce at 10:00AM EST today. Also at 10:00AM, the US Dollar Index stood at 80.32, up 0.326.
According to Commerzbank, investment and jewelry demand are helping to support the current price. "Alongside the currently robust jewelry demand from India and the high interest of speculative financial investors, ETF demand could also support gold price in holding up against the firm U.S. dollar and in advancing toward the $1,200 an ounce mark," a report from Commerzbank stated.
Although overall gold demand was down 11 percent in 2009, the 4th quarter increased nearly 27 percent over the 3rd quarter as demand for both investment and jewelry grew. For the year, investment demand was up more than 7 percent and exceeded jewelry demand for the first time since 1980, according to AngloGold Ashanti Ltd., Africa’s largest producer of gold. While first quarter results for 2010 have not been fully written, analysts suggest that demand for both sectors are continuing to rise, as indicated by the Commerzbank report.
According to the World Gold Council, how much demand can support rising gold prices remains to be seen. The WGC states in a recent report that, “Industrial and jewelry demand are expected to strengthen as the economy improves, but will still be hampered by the lingering effects of the recession.” Visit GoldPrice.net often to stay updated on circumstances surrounding the gold market.
Ronald Stevens
Senior Staff Writer - GoldPrice.net
