Wholesale market gold prices fell from an earlier rally Thursday in London, trading at $1,590 per ounce as the euro currency slipped from a one-week high $1.26 after new data showed US jobless claims continuing to fall.
It would be tempting to ask whether gold really is still a safe haven asset. With events of epic proportions taking place in financial markets gold sits relatively mute with a price action defined by narrow ranges and declining volumes and volatility.
Wholesale market prices to buy gold and silver repeated yesterday's rally in London trade after a slight drop Thursday morning, rising back above $1594 and $29.30 per ounce respectively as platinum and palladium also stemmed this week's sharp drops.
Rather counter intuitively, the financial crisis will have to play out a bit more before gold benefits to the extent many have been expecting. Specifically, gold bugs need to wait for the current period of relative dollar strength to fizzle out.