Wholesale gold bullion prices rallied back above $1,420 an ounce Tuesday morning in London, having earlier dipped back toward where they started the week following yesterday's 2% jump amid what one Hong Kong dealer suggested was the biggest rush to buy gold in half a century.
The US dollar gold price eased lower Friday morning in London, falling to $1,767 an ounce, 0.7% down on the start of the week, while stock markets also ticked lower and commodities were broadly flat. The silver price fell below $34 an ounce.
Gold rallied to a six-month high in dollars after Germany’s top court ruled that Germany can ratify the €500 billion ESM bailout fund but with strict conditions. Equities have seen tentative gains but silver is the largest beneficiary, rising above $34/oz. or 1.5%.
Bullion prices on the wholesale gold market rose back above $1,600 an ounce shortly before Tuesday's US trading, after failing to breach that level in the earlier Asian session, while European stock markets also ticked higher after a quiet morning's trading.
Gold bullion continued to trade in a range bound fashion around $1,758 per ounce - 8.3% above where it started October - following the release of US nonfarm payroll data, which showed the US economy added 80,000 jobs last month.
Gold bullion prices hovered around $1,650 per ounce Thursday morning in London - 1.6% off this week's high - while stocks and commodities continued to rally following rumors of European bank stress tests and proposed recapitalization.
Gold could see weakness today due to dollar strength and the possibility of margin calls for leveraged players on the Comex. However, bargain hunting bullion buyers are present at these price levels and gold is likely to be supported above $1,800/oz.
More bad news about the American economy and a Wall Street warning about looming drops in oil, metals and other commodities sparked an 814-point drop on the Toronto stock market Thursday and a plunge in the loonie to its lowest level in nearly a year and a half.