Gold prices began the final trading day of 2011 higher as bargain hunters took advantage of a recent downdraft that has left the metal with its first fourth-quarter loss in more than three years.
The approach of the Lunar New Year next month increased physical demand in China, a trend that is expected to continue into next week.
A broad-based commodity rally also helped precious metals prices, all of which were higher, with oil in London rising over $108 per barrel and oil in the U.S. above $99. Tensions between Iran and the U.S., as well as its Persian Gulf allies, helped boost the price of oil.
Currency moves were insignificant. In thin volume, the dollar was off a half a percentage point against a basket of major currencies, and the euro remained under $1.30.
