Reuters) - Spot gold is ending 2011 on a weak note after ten consecutive annual gains, heading for its first quarter of losses in more than three years and a new year likely to be dominated by worries about economic growth and sovereign debt.
U.S. gold rose more than 1 percent on Friday, as sharp falls in the previous session triggered buying interest on the Shanghai market, helping push spot gold up 0.8 percent.
This brings spot gold to a near-10 percent gain for the year, but the precious metal is down about 19 percent from the record peak of $1,920.30 an ounce hit in September.
The most-active U.S. gold futures contract gained 1.2 percent to $1,559.90 by 0244 GMT, snapping six consecutive sessions of losses
Spot gold rose 0.8 percent to $1,557.94, on course for a weekly decline of 3.2 percent. It was headed for a monthly loss of nearly 11 percent.
"There was buying interest from Shanghai when the market opened there," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
The active Shanghai gold forwards opened at 312.45 yuan a gram, about $14 below spot gold prices. But the gap quickly closed, as Shanghai gold rose to 318.25 yuan, about $9 above spot prices.
The upcoming Lunar New Year in about three weeks will help support gold consumption in China, traders said.
Technical analysis suggested that spot gold could rebound to $1,588 during the day, said Reuters market analyst Wang Tao.
U.S. gold rose more than 1 percent on Friday, as sharp falls in the previous session triggered buying interest on the Shanghai market, helping push spot gold up 0.8 percent.
This brings spot gold to a near-10 percent gain for the year, but the precious metal is down about 19 percent from the record peak of $1,920.30 an ounce hit in September.
The most-active U.S. gold futures contract gained 1.2 percent to $1,559.90 by 0244 GMT, snapping six consecutive sessions of losses
Spot gold rose 0.8 percent to $1,557.94, on course for a weekly decline of 3.2 percent. It was headed for a monthly loss of nearly 11 percent.
"There was buying interest from Shanghai when the market opened there," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
The active Shanghai gold forwards opened at 312.45 yuan a gram, about $14 below spot gold prices. But the gap quickly closed, as Shanghai gold rose to 318.25 yuan, about $9 above spot prices.
The upcoming Lunar New Year in about three weeks will help support gold consumption in China, traders said.
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