Gold jumped over 1% and silver rallied more than 2%, on Tuesday, as New Year rekindles the optimism of investors for riskier assets like commodities, whereas concerns over global economic apprehensions damped on confidence and outlook.

Better than anticipated data of manufacturing sector from China stimulated the investors interest who had moved away due to the tightness in the year-end credit.  The weakening in dollar also assisted in stimulating gains in commodities.

Ong Yi Ling, a commodity analyst, said, everybody is a little more enthusiastic and optimistic at the start of the year, but he also warned that the enthusiasm might not last long in case of gold as outlook in the market continues to be unpredictable because of unstable global economic sentiments.

Gold might fell below 1,500 USD during the Q-1 of 2012 and there is no possibility to assess its record high hit, last September, until late 2012, according to a poll.

Spot gold climbed 1.5% to 1,589.65 USD per ounce and eased a little to 1,588.29 USD at 0724 GMT, recoiling from a 10% December loss.

U.S. gold future, the most-active contract rallied 1.5% to 1,589.50 USD.

As per the technical analysis by a market analyst said, spot gold might climb towards 1,629 USD an ounce in the day.

Iran’s development to pursue nuclear ambitions has engrossed the oil market and could possibly sustain safe haven demand in gold.  But for the time being, gold is at a turning point on macroeconomic situations and transformation in risk appetite.

Cash silver rose 2.2% to 28.41 USD, guiding the rally in the complex U.S. precious metals silver climbed 1.8% to 28.41 USD.  Silver is one of the most promising trades of the New Year and investors can possibly look silver back on radar screens.