Gold up 6% in 2012, 12th straight year of gains

Other precious metals finished strongly, with palladium up nearly 10% on the year, silver up 9% and platinum up 8%

jumped on the last trading day of 2012 to finish up 6% on the year on news of a possible US fiscal deal, which lifted a market that had rallied earlier in the year on low interest rates, euro zone worries and central bank demand for bullion.

Other precious metals finished strongly, with palladium up nearly 10% on the year, up 9% and platinum up 8%.

It was the 12th straight year of gains for gold, making it one of the longest bull runs ever in a commodity. Oil, in contrast, has only been up for a fourth year since its rebound from the 2008 financial crisis.

Analysts expect bullion -- which started 2012 at below $1,580 and scaled nearly $1,800 by October after the US Federal Reserve rolled out a fresh economic stimulus -- to chart newer peaks in 2013. The market's all-time high above $1,930 was set in September 2011.

"If anything, gold's rally today with the removal of the US fiscal cliff proves that it's become a risk asset more than a safe haven," said Adam Sarhan at Sarhan Capital in New York.

Traditionally an inflation hedge and a market that investors rush to in times of trouble, has lately behaved more like an industrial commodity - rising and falling with the stock market and sometimes even following the dollar.

Worries about the so-called fiscal cliff had weighed on for weeks as the White House and its rival Republicans in Congress sought to find ways to avert some $600 billion in tax hikes and spending cuts that could have sent the economy into another recession in 2013.

Obama cautioned at a news conference that a deal was imminent but not yet in hand.

"Today it appears that an agreement to prevent this New Year's tax hike is within sight, but it is not done," the president said. "There are still issues left to resolve, but we're hopeful that Congress can get it done, but it's not done."

futures' most-active contract settled at $1,675.80 an ounce, up 1.2% for the session and 6.1% on the year. Until news of the fiscal deal emerged, the market had barely gained half a percent.

The spot price of bullion hovered above $1,670 an ounce, up 1% on the day and up nearly 7% for 2012.

Although they moderated towards the year end, prices were up sharply in the first and third quarters, aided by ultra-loose monetary policy in the world's leading economies, bullion buying by central banks trying to diversify foreign reserves and concerns over the financial stability of the euro zone.

The rally in those quarters gave almost all of its 6% annual gain, ensuring its unbroken run since 2001.

Platinum, palladium and -- also counted as precious metals along with -- outperformed bullion for the year.

Palladium has been on a bullish trend since November when refiner Johnson Matthey projected the biggest supply deficit in 11 years in the metal largely used in auto exhaust systems.

The spot price of palladium hovered near $700 an ounce, up more than 7% for the year.

Platinum has turned volatile after rallying earlier in the year on concerns about sprawling worker strikes in top producer South Africa.

US platinum's front-month contract fell to a four-month low before recovering to finish at $1,538 an ounce, up 10% for 2012.

was up 1% on the day and 9% on the year, hovering at just above $30 an ounce.

image
Business Standard
177 22
Business Standard

Gold up 6% in 2012, 12th straight year of gains

Other precious metals finished strongly, with palladium up nearly 10% on the year, silver up 9% and platinum up 8%

Reuters  |  New York 



jumped on the last trading day of 2012 to finish up 6% on the year on news of a possible US fiscal deal, which lifted a market that had rallied earlier in the year on low interest rates, euro zone worries and central bank demand for bullion.

Other precious metals finished strongly, with palladium up nearly 10% on the year, up 9% and platinum up 8%.

It was the 12th straight year of gains for gold, making it one of the longest bull runs ever in a commodity. Oil, in contrast, has only been up for a fourth year since its rebound from the 2008 financial crisis.

Analysts expect bullion -- which started 2012 at below $1,580 and scaled nearly $1,800 by October after the US Federal Reserve rolled out a fresh economic stimulus -- to chart newer peaks in 2013. The market's all-time high above $1,930 was set in September 2011.

"If anything, gold's rally today with the removal of the US fiscal cliff proves that it's become a risk asset more than a safe haven," said Adam Sarhan at Sarhan Capital in New York.



Traditionally an inflation hedge and a market that investors rush to in times of trouble, has lately behaved more like an industrial commodity - rising and falling with the stock market and sometimes even following the dollar.

Worries about the so-called fiscal cliff had weighed on for weeks as the White House and its rival Republicans in Congress sought to find ways to avert some $600 billion in tax hikes and spending cuts that could have sent the economy into another recession in 2013.

Obama cautioned at a news conference that a deal was imminent but not yet in hand.

"Today it appears that an agreement to prevent this New Year's tax hike is within sight, but it is not done," the president said. "There are still issues left to resolve, but we're hopeful that Congress can get it done, but it's not done."

futures' most-active contract settled at $1,675.80 an ounce, up 1.2% for the session and 6.1% on the year. Until news of the fiscal deal emerged, the market had barely gained half a percent.

The spot price of bullion hovered above $1,670 an ounce, up 1% on the day and up nearly 7% for 2012.

Although they moderated towards the year end, prices were up sharply in the first and third quarters, aided by ultra-loose monetary policy in the world's leading economies, bullion buying by central banks trying to diversify foreign reserves and concerns over the financial stability of the euro zone.

The rally in those quarters gave almost all of its 6% annual gain, ensuring its unbroken run since 2001.

Platinum, palladium and -- also counted as precious metals along with -- outperformed bullion for the year.

Palladium has been on a bullish trend since November when refiner Johnson Matthey projected the biggest supply deficit in 11 years in the metal largely used in auto exhaust systems.

The spot price of palladium hovered near $700 an ounce, up more than 7% for the year.

Platinum has turned volatile after rallying earlier in the year on concerns about sprawling worker strikes in top producer South Africa.

US platinum's front-month contract fell to a four-month low before recovering to finish at $1,538 an ounce, up 10% for 2012.

was up 1% on the day and 9% on the year, hovering at just above $30 an ounce.

RECOMMENDED FOR YOU

Gold up 6% in 2012, 12th straight year of gains

Other precious metals finished strongly, with palladium up nearly 10% on the year, silver up 9% and platinum up 8%

Gold jumped on the last trading day of 2012 to finish up 6% on the year on news of a possible US fiscal deal, which lifted a market that had rallied earlier in the year on low interest rates, euro zone worries and central bank demand for bullion.

jumped on the last trading day of 2012 to finish up 6% on the year on news of a possible US fiscal deal, which lifted a market that had rallied earlier in the year on low interest rates, euro zone worries and central bank demand for bullion.

Other precious metals finished strongly, with palladium up nearly 10% on the year, up 9% and platinum up 8%.

It was the 12th straight year of gains for gold, making it one of the longest bull runs ever in a commodity. Oil, in contrast, has only been up for a fourth year since its rebound from the 2008 financial crisis.

Analysts expect bullion -- which started 2012 at below $1,580 and scaled nearly $1,800 by October after the US Federal Reserve rolled out a fresh economic stimulus -- to chart newer peaks in 2013. The market's all-time high above $1,930 was set in September 2011.

"If anything, gold's rally today with the removal of the US fiscal cliff proves that it's become a risk asset more than a safe haven," said Adam Sarhan at Sarhan Capital in New York.

Traditionally an inflation hedge and a market that investors rush to in times of trouble, has lately behaved more like an industrial commodity - rising and falling with the stock market and sometimes even following the dollar.

Worries about the so-called fiscal cliff had weighed on for weeks as the White House and its rival Republicans in Congress sought to find ways to avert some $600 billion in tax hikes and spending cuts that could have sent the economy into another recession in 2013.

Obama cautioned at a news conference that a deal was imminent but not yet in hand.

"Today it appears that an agreement to prevent this New Year's tax hike is within sight, but it is not done," the president said. "There are still issues left to resolve, but we're hopeful that Congress can get it done, but it's not done."

futures' most-active contract settled at $1,675.80 an ounce, up 1.2% for the session and 6.1% on the year. Until news of the fiscal deal emerged, the market had barely gained half a percent.

The spot price of bullion hovered above $1,670 an ounce, up 1% on the day and up nearly 7% for 2012.

Although they moderated towards the year end, prices were up sharply in the first and third quarters, aided by ultra-loose monetary policy in the world's leading economies, bullion buying by central banks trying to diversify foreign reserves and concerns over the financial stability of the euro zone.

The rally in those quarters gave almost all of its 6% annual gain, ensuring its unbroken run since 2001.

Platinum, palladium and -- also counted as precious metals along with -- outperformed bullion for the year.

Palladium has been on a bullish trend since November when refiner Johnson Matthey projected the biggest supply deficit in 11 years in the metal largely used in auto exhaust systems.

The spot price of palladium hovered near $700 an ounce, up more than 7% for the year.

Platinum has turned volatile after rallying earlier in the year on concerns about sprawling worker strikes in top producer South Africa.

US platinum's front-month contract fell to a four-month low before recovering to finish at $1,538 an ounce, up 10% for 2012.

was up 1% on the day and 9% on the year, hovering at just above $30 an ounce.

image
Business Standard
177 22
Widgets Magazine

More News

  • Airtel deploys carrier aggregation technology to offer better data speed in  Mumbai Airtel to offer 100 mbps data speed in Mumbai via advanced tech
  • CCI slaps over Rs 6,700 crore fine on 11 cement companies CCI slaps Rs 6,700-crore fine on 11 cement firms
Widgets Magazine

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard