The recent poor showing of European economies in worldwide stock and currency markets may have resulted in a massive sell-off of European stocks and commodities, but this only slightly affected gold prices in Asia. Demand for precious metals remains high especially in China, but the lingering economic woes of Europe — including a struggling euro and the possible bailout of Greece — are making investors more cautious.
Analysts say gold appeals to investors jittery over the European debt crisis. Chinese demand for the precious metal just before the Chinese New Year also gives gold a boost in the marketplace. But traders believe that the prevailing cultural affinity for gold will continue to drive demand in China throughout 2012.
Silver and platinum prices were also strong in the markets. Silver closed above USD 29.53 per ounce for the second consecutive week, the first time it has done so since October last year. Meanwhile, looming power shortages in South Africa boosted demand for platinum.
