Gold futures remained in positive zone on Wednesday and recorded gain of 12 percent of the month of August which happens to be highest monthly gain since November 2009. Gold futures contract for December delivery gained 0.1 percent or $1.90 to $1,831.70 per ounce on Comex division of New York Mercantile Exchange. The respective contract has gained 12 percent or $201 in the month of August and has reached its record highest of $1,891.90 per ounce.

Most of analysts project strong demand for the precious metal but also foresee resistance and volatility in the coming sessions. Managing director, Sunil Kashyap from Scotia Capital in Hong Kong commented, “Any level below $1,800 per ounce should see some buying because when prices went to $1,900, many investors were on the sidelines.”

Among other news that positively impacted the precious metal was the decision of People’s Bank of China to increase the holding of gold and other commodities.

Moreover the gold production is also increasing as the Australia’s gold production gained 10 percent to 270 metric tons in fiscal year 2010-2011. Peru has also reported the increase of 9.1 percent in its gold production. Despite increased production analysts still believe shortage of supply as demand is increasing with much higher pace.

Among other metals, silver futures contract for December delivery gained 0.7 percent or $0.30 to $41.77 per ounce while the respective contract gained 4.1 percent in the month of August. Copper futures contract for December delivery jumped 1.5 percent or $0.06 to $4.20 per pound while for the month fell 6.3 percent.

Platinum futures contract for October delivery advanced 0.2 percent or $3.10 to $1,856.20 per ounce while palladium futures contract for December delivery gained 1.4 percent or $11.15 to $790.45 per ounce.