Prices to buy gold climbed to $1,510 per ounce Wednesday morning in London - a 0.5% gain for the week so far - while stocks and commodities gained and US Treasury bonds fell ahead of the Greek parliament austerity vote.
The gold price continued to hold steady Thursday morning, trading in a tight range around $1,536 per ounce - 2.6% off last month's spot market all-time high - while stocks and commodities gained ahead of interest rate announcements.
Metals markets opened with a tad of weakness manifest in gold and lingering strength in the other components of the complex this morning. Spot gold traded near the $1,525.00 area showing and silver opened at $37.18 mark per ounce.
Based on current economic factors, we expect gold prices will end the year somewhere between $1,700 and $2,000 per ounce. Silver and platinum prices will experience similar growth based on investor demand.
Well, the Fed "giveth" less than some had hoped for, but it also "giveth" a roughly two-month reprieve to the dollar-carry/commodity-betting crowd. The parade on "Easy Street" thus continues amid noisy revelry.
Gold and silver have fallen by less than 1% in all major currencies today. Asian equities were mixed with strong selling seen in India and European equities and US index futures are tentatively higher.
Traders from both India and China, the world's top two physical gold consumers, were "heavily on the bid" for gold overnight, confirms a dealer, noting that - ahead of next month's Chinese New Year celebrations premiums above London prices climbed.
Gold and silver prices reached new record highs of $1,430.95/oz and 30 year highs of $30.68/oz respectively yesterday. It is important to remember that these are nominal highs of more than 30 years ago.