Dhaka, Bangladesh (BBN) - Oil prices continued to rise on the beginning of the New Year adding to Brent’s 13 percent rise in 2011. Both demand and supply dynamics pushed oil prices up on Tuesday.
Strong economic data from the U.S. and China along with mounting concern about supply disruption from Iran were the main drivers for this rise, a weekly market update said.
The rally continued the next day as tensions between the West and Tehran rose further with Iran threatening to block crude shipments through the strategic Strait of Hormuz in retaliation against tougher sanctions from the West over its nuclear program.
After posting its smallest annual rise in three years of 10 percent for 2011, gold rose on the beginning day of the year rallying in tandem with Euro and the Equities markets.
Gold moved up after positive data from China and Germany suggested global economic recovery was gaining momentum.
Moreover, expectations of a possible new market stimulus ahead of a meeting by France and Germany next week to resolve the euro zone debt crisis also boosted bullion’s prices. Gold continued the rally the following day and ended the week rising above US$1610 per ounce.
BBN/SSR/AD-07Jan12-2:46 pm (BST)