US dollar gold bullion prices rose to $1,625 an ounce during Monday morning's London trading, towards the higher end of gold's range over the last three months. Silver bullion climbed to $28.18 an ounce – in line with last week's close, after briefly dipping below $28.
Wholesale market gold prices traded as low as $1,560 an ounce Friday morning, before recovering some ground by lunchtime in London, while European stock markets were also down and commodities were broadly flat. Silver prices meantime sank to a 2012 low at $26.64 an ounce.
While gold prices will no doubt be volatile as a result of the upcoming Greek re-election results and the market speculations of further quantitative easing, long-term investors are still taking advantage of dips in gold prices.
Gold may well remain volatile, but it is increasingly attractive as the only truly hard currency, and it may also induce inflationary distortions that give a rise to commodities and gold as store of value alternatives.
A third day of losses was in store for gold as deepening "euroxiety" took hold of markets and wiped away remaining traces of last week's "europhoria." The yellow metal opened the midweek session with a drop of $9 and was quoted at $1,772 the ounce.
Metals markets opened firmer on Monday as the on-going eurozone drama continued to play out without signs of a resolution despite the G-20 summit's end. Gold moved higher despite a slip in the euro and a slightly stronger US dollar.
Metals prices received further lift this morning as turmoil in Europe diverted funds in their direction but the complex was still competing with what is apparently shaping up as a stock market rally of notable proportions on both sides of the Atlantic.
Gold prices dropped below $1,600 per ounce for the second time in 24 hours on Tuesday morning - testing a level first hit on the way up back in July - before rebounding, while stocks and commodities rallied and government bond prices fell.
Metals prices with the exception of silver attempted to recover some of Monday's heavy losses in early trading action. The currently apparent fatigue being exhibited by the precious metal has not halted unequivocal pronouncements that gold "has to go up."