The spot gold price dropped below $1,600 an ounce for the first time in six months Wednesday, as the dollar strengthened and stock markets were broadly flat, ahead of the publication of the latest Federal Reserve policy meeting minutes later today.
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 climbed to $1,660 per ounce Wednesday morning in London – in line with where they ended last week – before drifting lower ahead of US open, while stock, commodity and government bond prices were broadly unchanged.
Dollar prices to buy gold rallied to $1,658 per ounce Wednesday morning in London - 0.8% up on Asian session lows - following reports that the International Monetary Fund is seeking to boost its lending capacity by $1 trillion.
The gold price fell to $1,789 per ounce Wednesday lunchtime in London - still 1% up on yesterday's low - while European stock markets also fell as investors and policymakers consider their response to a sluggish growth outlook.
Stocks and commodities fell and longer dated US Treasury bonds rose after US Federal Reserve chairman Ben Bernanke made no specific reference to a third round of quantitative easing (QE3) at a press conference on Wednesday.
The dollar gold price fell to $1,542 per ounce Wednesday morning in London - still above where it started the week, and 2.2% off last month's record - while commodities fell and stocks were mixed after Greece's prime minister survived a confidence vote.