The spot market gold price fell back to $1,660 an ounce Friday morning, close to where it started the week, as stock markets also edged lower, ahead of talks in Washington aimed at avoiding the $600 billion "fiscal cliff" of spending cuts and tax rises due within days.
Wholesale dollar prices to buy gold eased 0.5% from a new two-week high at $1624 per ounce Thursday lunchtime in London, as the euro currency fell hard following a widely expected cut to European Central Bank interest rates.
The State Bank of Vietnam is instituting a de facto nationalization of Vietnam’s gold market, in an effort to restore confidence in the country’s currency – the dong. Vietnam is suffering from a growing current account deficit and record-high inflation.
Dollar gold bullion prices jumped 1.7% in half an hour Wednesday lunchtime in London following the announcement of coordinated action from the world's major central banks to boost the provision of dollar liquidity to the global financial system.
Gold ticked lower momentarily to $1,417.63/oz on the open in Asia prior to rising to over $1,432/oz where determined sellers sold aggressively, sending gold back down to near Friday's closing price on the London AM Fix.