U.S. dollar gold bullion prices fell slightly in Wednesday morning's London trading, but held above the $1,600 per ounce level it rallied above yesterday after Federal Reserve chairman Ben Bernanke told Congress that that Fed's ongoing quantitative easing policy "is providing important support to the recovery."
The relationship between gold and equities has similarly eased...this suggests that gold's safe-haven properties are currently considered more dominant, and as such gold is considerably lagging the move in equities.
Wholesale gold bullion prices ended Tuesday morning in London at $1,655 per ounce, regaining ground lost yesterday to climb back to where it started the week, with dealers reporting signs of strong demand from India and China, the world's two biggest gold buying nations.
Gold prices hovered just below $1,738 an ounce Monday morning in London, close to three-week highs, while stocks and commodities were broadly flat and the euro traded near two-month lows against the dollar.
Spot market prices to buy gold in dollars dropped to below $1,710 an ounce Friday morning, reversing gains from earlier in the week, while stocks and commodities fell and the US dollar rallied ahead of the release of key US jobs data.
Singapore currently controls roughly 2% of global gold demand and aims to grow that share to some 10% to 15% over the next five to 10 years. A market expansion is expected to increase global demand for gold and silver bars and coins in the fourth quarter.
The spot market gold price touched a new six-month high at $1,746 an ounce Wednesday morning, while stocks and the euro also rallied following a ruling by Germany's Constitutional Court cleared the way for the creation of a permanent euro-zone bailout fund.
Wholesale gold prices dipped below $1,665 an ounce during Wednesday morning's London trading, slightly below where they started the week, while stock markets also edged lower, with markets focused on upcoming meetings of central bankers.