After posting gains for the 11th straight year in 2011, gold experienced gains as the commodity markets ushered in the new year with good news for precious metal buyers.
Reuters reported that the price of gold rose by a significant margin as investors started off the new year with a renewed interest in riskier assets such as commodities.
According to the news source, better-than-expected manufacturing data from China fuelled interests among investors who had abstained from trading at the end of 2011 because of year-end credit conservatism. A weaker U.S. dollar also helped to fuel growth in the precious metals market.
“Everyone is a bit more optimistic at the beginning of the year,” Ong Yi Ling, an analyst at Phillip Futures, told Reuters of the positive start for commodities. The metals expert noted that gold may reach levels near the record high posted in 2011, but it may not be until the end of the year.
The price of gold for February delivery rose $25.20 to $1,592.00 an ounce on the New York Mercantile Exchange, marking an increase of 1.61 percent for the commodity, according to CNN.