The Middle East will take a bigger share of gold demand as buyers from Kuwait to Saudi Arabia to the United Arab Emirates diversify investments and Dubai nears offering a contract for immediate delivery bullion.
Wholesale London gold sank against all currencies Thursday morning, falling 1.9% vs. the dollar to hit six-month lows after initially trading flat overnight despite the U.S. Fed finally reducing its $85 billion per month in asset purchases.
The price of gold bounced from a steady drop Monday lunchtime in London, trading back at $1,234 per ounce as Asian stock markets ended sharply down but Europe ticked up ahead of this week's U.S. Federal Reserve policy decision, due Wednesday.
Last week's losses of 3.6% in gold were extended Monday morning, with silver also falling again as world stock markets rose yet again. Priced in dollars, gold dropped below $1,230 per ounce for the first time since the first week of July.
Leaping toward six-week highs for Eurozone investors, gold initially dropped $5 per ounce, and then rallied $15, before returning to the $1,317 per ounce level seen throughout what traders called "soporific, slow" dealing so far this week.