New York, NY, United States (AHN) – Gold prices fell Wednesday for the fifth consecutive day. In early afternoon trading, the yellow metal was off as much as $23.50, or 1.5 percent, to $1,571.10 a troy ounce.

Silver, poor man’s gold, fell in sympathy and plummeted 4.3 percent to $27.46 a troy ounce.

With no major U.S. economic reports on tap, investors were focusing on Europe, and the hugely successful Italian debt auction. The robust demand for Italy’s bond was a strong indication that investors were moving back into the beset sovereign debt market.

Despite the falling prices for gold and silver, analysts remain optimistic for both commodities in 2012.

Gold’s direction has been led by headlines, especially those out of the eurozone, and the volatility guided by rapidly changing news, which has made many investors a bit woozy and trigger happy to sell on gains.

The December breakdown of gold was caused by several factors. Chief among them was that the precious metal was one of the few stellar performers for 2011, leading money managers to sell the metal to book profits and to raise cash to cover margin calls.

While gold remains off about 16 percent from its August high of $1,923.70, it is still up double digits for the year, roughly 14 percent higher than 2010, making it one of the brightest and best performers for 2011.

While gold could continue to be weak during the first month of the new year, there is a strong chance the yellow metal could notch another strong year and, longer term, the outlook looks even more rosy.

Silver, which often moves in tandem with gold, should also see rejuvenated interest, pushing the grey metal higher by double or triple digits from its average December 2011 level of around $29. The metal, used industrially, for collectible coins and a hedge, is set to end the year with a small loss. But increases in the metal’s price for 2012 look almost certain.

Long term supply/demand is a positive factor for silver. Every cellphone in the world contains some silver, and once silver is used, it is gone.

No one has a crystal ball as to what the markets and the metals will do in 2012, but the future direction for both gold and silver look luminous.

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