Gold falls slightly to settle at $1,808; copper hits 2011 low

Gold has been a major beneficiary of the Fed’s [cnbc explains] easing programs, having gained more than 40 percent since the central bank’s most recent round of bond-buying, which ran from November 2010 to June this year.

Spot gold [XAU= 1779.74 -1.55 (-0.09%) ] was last down 1.1 percent at $1,782.49 an ounce, having nearly eased the week-to-date decline that was apparent the day before. Gold futures [GCCV1 1786.30 -21.80 (-1.21%) ] fell slightly by $1 to settle at $1,808.1.

So far this month, gold is down by 0.7 percent and set for its first monthly fall since June, but on a quarterly basis, it is set for its strongest gain since 1986 as consumers and investors alike remain undeterred by near-record highs.

Runaway Bulls

Highlighting the bullishness within the gold market, an annual survey of gold investors and analysts at the world’s largest bullion traders event showed participants believe the price will rise beyond $2,000 an ounce in the next year, although it will not match the record-breaking 50 percent surge of the last 12 months.

With no let up seen in the financial markets uncertainty that fanned the safe-haven investment spree, bullion is expected to rise to $2,019 an ounce by November 2012, according to an anonymous survey of delegates at the conclusion of the London Bullion Market Association’s (LBMA) annual conference on Tuesday. That is about 12 percent above current levels.

Silver [SICV1 39.755 -0.714 (-1.76%) ] was last up 0.9 percent $40.50 an ounce.

In fundamental news for silver, imports into key consumer China rose to two-month highs in August, but at 314,706 kg, they were down by a third year-on-year and below both the monthly average of 316,865 kgs for this year and the 2010 monthly average of 436,777 kgs.

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