Although it has yet to regain its footing since its end-quarter 2011 jaw-dropping fall, gold will continue as the world's most favored investment pick to cushion oneself against the threat of global financial meltdown.

What's more, with its lowered trading price, investment appetite and intrigue is all the more pricked, pushing investors to buy the commodity.

"It is the sharp drop in price that makes it more attractive," Jeffrey Currie, head of commodities research of Goldman Sachs Group Inc. said. Investors take advantage of the low prices, creating a buying frenzy of the yellow metal, which will ultimately drive prices up because of a possible supply shortage, whether real or speculated.

Gold-shopping by central banks, meant to diversify reserves and stabilize the fiscal well-being of nations, will not only continue to hold the fort for the precious metal but also create the pandemonium for gold acquisition.

"Demand from China remains healthy ahead of the Lunar [New Year] holidays, volumes traded on the Shanghai Gold Exchange have started the year on a positive note, exceeding the lower volumes traded in November and early December," Barclays Capital said in a note. India, the world's biggest gold buyer, is currently experiencing a low gold sales turnout due to a strengthening yet also fluctuating rupee.

According to the International Monetary Fund, gold purchases of central banks from January to November of 2011 alone registered a total of 350 tonnes.

On Tuesday, Goldman Sachs Group Inc. forecast gold futures in the 12 months of 2012 may climb to $1,940 an ounce in the New York Comex floor, while a survey by the London Bullion Market Association showed the safe haven metal may average $1,766 an ounce in 2012 and could trade as high as $2,055 an ounce.

Prices may have fluctuated in the past few months, mostly triggered by strengthening U.S. interest rates and inflation which on its own end also fluctuates, but analysts and experts remain confident the precious metal will continue to demonstrate its shining performance.

Based on analyst forecasts, notwithstanding rollercoaster prices, 2012 could still potentially be the gold market's 12th consecutive year of gains.

Gold prices had consistently increased over the past decade. In 2011, it registered 10 per cent for an 11th year of gains, according to Bloomberg. The safe haven metal shed 16 per cent of its shine from a record in September.

Gold, long considered a safe haven to support one's fiscal being, hit a wall when prices tumbled $1,540 in December.

It now currently trades at $1,600 per ounce average.

Its last record high was in September 2011 at $1,920.94 per ounce.

Historically, the yellow metal reached its real high three decades ago at $2,500 per ounce in today's dollars.

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