GOLD PRICES hit 1-month highs for US investors overnight Monday, peaking at $1230 per ounce before slipping back as world stock markets rose.
Crude oil fell hard once again, and copper hit its lowest level since 2010.
US Treasury bonds and other major government debt prices held flat as Greece's borrowing costs eased back on the market and Eurozone equities rose more than 1.2%.
Gold prices in Euros reached new 16-month highs even as the single currency steadied on the FX market above last week's 9-year lows to the Dollar.
Dollar gold prices will average $1225 per ounce in 2015, some 4% below last year's average, according to a new forecast from Bank of America-Merrill Lynch.
BAML reckons that weak gold investor sentiment, gently higher real interest rates, and further gains in world stock markets will curb price gains.
But "sustained demand growth from emerging markets and lack of selling from investors in the world ex-China are supportive," the note adds.
"It would seem," says the London office of brokers Marex Spectron, "that there is money looking for a home at the beginning of the new year...happy to invest in precious metals."
"There is [also] still good physical demand out of Asia at lower numbers, keeping gold supported."
"Gold lost none of its shine in Asian trade today," says a trading note from Swiss refining and finance group MKS, pointing to the overnight spike above $1230 per ounce.
Gold prices in Shanghai closed Monday with a 1.3% gain vs. the Yuan on solid volumes, but trimmed China's key gold contract premium above London quotes to $3.80 per ounce.
The city's "free trade zone" gold contracts – launched in September to attract international traders – again saw very light action, with the main iAu9999 product drawing only 0.5% as much business as the main domestic contract.
"With a seasonally quiet period" ahead, however, "imports and premiums [above London prices] are likely to be subdued in the coming weeks," reckons the latest weekly analysis from Japanese conglomerate Mitsubishi, "denying a crucial source of support to the physical market."
"Further losses on most stock exchanges [have] helped the gold price continue its upward trend," reckons a note from Germany's Commerzbank.
"For the time being," agrees analyst Edward Meir at INTL FCStone in the US, "we won't likely see any change in the inverse relationship between gold and US equity markets."
