President of the European Central Bank Mario Draghi says "buckle up" because volatility is back! Keep your hands and feet in the car because it is going to be a ride that may make the "Taper Tantrum" look tame.
Wholesale gold bullion prices climbed back above $1,725 an ounce Wednesday while stocks and the euro recovered losses made in Asian trading immediately after European policymakers failed to reach a deal on Greece.
Gold prices hovered just below $1,738 an ounce Monday morning in London, close to three-week highs, while stocks and commodities were broadly flat and the euro traded near two-month lows against the dollar.
The spot market gold price touched a new six-month high at $1,746 an ounce Wednesday morning, while stocks and the euro also rallied following a ruling by Germany's Constitutional Court cleared the way for the creation of a permanent euro-zone bailout fund.
Spot market gold bullion prices hovered just below $1,670 an ounce for most of Friday morning's London trading, a few dollars below yesterday's four-month high. Stock markets ticked lower and US Treasuries gained, as analysts speculate on the prospects for more quantitative easing .
Wednesday's minutes from the US Federal Reserve's latest policy meeting "ignited" the gold investment market, according to one trader, with buy-stops triggered at $1,650, according to another. The move took this week's gains in gold to 3.0% at $1,667 per ounce.
Spot market gold prices hit their highest level since early May Wednesday, rising to $1,645 an ounce during this morning's London trading. Silver prices also gained, rising to $29.70 per ounce – their highest level since early June.