Investors are Buying Gold in Europe after a dip in prices prompted a rise in demand for the physical stocks of the precious metal.
A number of speculative buyers have left the market in the run up to the new year, but this is unlikely to prevent 2010 being a strong year for gold said Afshin Nabavi, head of trading at MKS Finance.
The analyst stated: "Selling seems to be coming from specs liquidating their positions and if it hadn't been for physical demand, the market would have been much lower.
"It is very difficult to have an opinion for the next few days, but I remain positive towards the price of gold in the coming year."
Meanwhile, Pradeep Unni, a senior analyst at Richcomm Global Services, predicted that prices could close the year in the range of $1,050 to $1,055.
This is in line with the view of the Royal Bank of Scotland, which has raised its long-term forecast for Gold Prices in both 2011 and 2012.
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