Spot gold is ending 2011 on a weak note after 10 straight 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. Spot gold was headed for a 10-percent gain for the year, but the precious metal is down nearly 19 percent from a record $1,920.30 hit in September.
The most-active US gold futures contract gained 1.5 percent to $1,563.50 by 0730 GMT, snapping six straight sessions of losses. Spot gold rose 1 percent to $1,561.89, on course for a weekly decline of 2.9 percent. It was headed for a monthly loss of 10.5 percent. The active Shanghai gold forwards opened at 312.45 yuan a gram ($1,537.8 an ounce), about $14 below spot gold prices. But the gap quickly closed and Shanghai gold stood at 319.50 yuan, or $1,577 an ounce, later in the day.
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