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.
US dollar gold prices drifted lower to $1,722 an ounce this morning in London, slightly down from last week's close, while stock markets also fell along with US Treasury bonds as US policymakers continue to discuss how to deal with the so-called fiscal cliff.
Wholesale prices for gold bullion dropped below $1,710 an ounce ahead of Tuesday's US session, its lowest level in over six weeks, as stocks and commodities also fell and the Dollar rallied, with two weeks to go until the US presidential election.
Wholesale market gold bullion prices dropped to $1,757 an ounce Monday morning in London – 1.7% off a seven-month high hit briefly last Friday – as stocks, commodities and the euro also ticked lower and US Treasuries gained.
Wholesale prices to buy gold using US dollars or British pounds fell Thursday morning to trade just 1% below their seven-month highs of the last week. Commodity prices dropped once again with Asian and European equities.
Gold briefly popped above the 200 day moving average at $1,643/oz. this morning and remains near the 3½ month high set in the prior session. A break above the 200 day moving average will be bullish technically.
US dollar gold prices dropped as low as $1,565 an ounce during Wednesday morning's London trade – 1.4% down on this week's high – before recovering some ground by lunchtime, while stock markets posted slight gains.
Gold prices hit $1,781 per ounce Tuesday lunchtime in London – 0.3% off last week's high – while stocks and the euro gained, as euro-zone leaders postponed a decision on whether to increase the size of the single currency bailout fund.
Silver's nearly 3% surge in trading in Asia may indicate that the long expected short squeeze may be underway. Bullion banks with large concentrated short positions may be being forced to buy back their short positions - propelling silver higher.