RUSSIA January 07 2015 6:40 PM
NEW YORK (Scrap Register): Gold traders said the metal was also being lifted by concerns over tensions between Russia and the West. Russia's Foreign Ministry said that a widening of US sanctions against Moscow may hamper bilateral cooperation on some issues.
After falling for consecutive three months in a row, spot gold prices turned positive in Dec’14 gaining by 1.41 percent. Prices traded in a range of $100 making an high of $1238.2/oz and a low of $1142.91. In 2014, spot gold prices rose marginally by around 2 percent and closed at $1183.55/oz.
In the first half of last month, gold received support from the physical markets and from India, the second-biggest gold consumer, which eased curbs on imports while in top consumer China premiums were steady at about $1-2, reflecting strong buying interest. Prices got a lift after Moody's cut its rating on Japan, stimulating buying interest in the yellow metal.
The dollar index has been the driving factor for the decline in gold prices in the second half of the last month.. The index gained by around 2.5 percent last month and traded at its highest point in the last nine year. Gold has fallen in tandem with oil in the same time frame on expectations that weaker crude prices could reduce inflationary pressures. The metal is usually seen as a hedge against oil-led inflation.
Further, signals that the U.S. economy is benefiting from a decline in oil prices renewed expectations of a tightening in monetary policy by the U.S. Federal Reserve around the middle of next year.