Erica Rannestad, analyst at CPM Group, said prices might weaken initially as the eurozone concerns are less worrisome.

FORBES: Most Survey Participants See Higher Gold Prices Next Week

Rohit Savant, senior commodity analyst with CPM Group, said many potential buyers in India appear to be still holding off.

FORBES: FOCUS: Analysts: Physical Market Watching To See If Gold Price Stabilizes

Erica Rannestad, commodities analyst with CPM Group, said there is a normal tendency for inventory building during the first month of a new year.

FORBES: Seasonal Effect Prompts Large Spurt In January U.S. Mint Gold-, Silver-Coin Sales

Turkey provided its commercial banks the option of meeting a portion of their Turkish lira reserve requirements with alternatives, said Erica Rannestad, commodity analyst with CPM Group.

FORBES: FOCUS: CPM Group: Turkey's Rules On Gold Deposits Could Mean 'Rehabilitation' Of Metal As Monetary Asset

Rohit Savant, senior commodity analyst with CPM Group, a metals consultancy, said many Indians bought gold last week that they would have bought in May had prices not fallen so steeply.

WSJ: Gold Rally May Lose Steam

"Inflation is definitely not a concern right now, and it's unlikely to become a major concern in the future, " said Rohit Savant, senior commodity analyst with CPM Group, a New York metals consultancy.

WSJ: Gold Sinks Into Bear Territory

For 2011, CPM Group projects around 70 million to 71 million ounces, said commodity analyst Erica Rannestad.

FORBES: Global Output From Gold Mines In Upswing Although Some Constraints Persist