Bullion prices have rallied for six days, moving through the technical resistance of the 150-day and 200-day moving averages. Platinum and palladium also rallied for a fifth straight day on growing fears that violence due to labor issues will spread.
Spot market gold prices hit their highest level since early May Wednesday, rising to $1,645 an ounce during this morning's London trading. Silver prices also gained, rising to $29.70 per ounce – their highest level since early June.
Gold testing support at $1,700 plus the sharp turnaround seen yesterday indicates a market that is consolidating and may soon go higher. Note the price action in the gold mining shares, with both the XAU and HUI indices surging nearly 3% on the day.
Gold bullion prices fell as London opened on Tuesday, but held steady for the rest of the morning around $1,610 per ounce - 0.8% off Monday's all-time high. Silver bullion prices were also steady, hovering around $40.40 per ounce - up 0.8% from Friday.
Ups and downs were noted in the euro, the dollar, bonds, precious metals, and equities. Gold prices opened with a near-$8 loss in New York as details began to emerge from Brussels that some sort of resolution to the Greek problem might be in the offing.
Gold bullion prices held steady around $1,517 per ounce for most of Wednesday morning in London - a 2% jump from last Friday's close - while stocks and commodities fell after Portugal saw its sovereign debt downgraded to junk.
Gold prices bucked an emergent trend and continued to approach the $1,265 June high as uniformly exuberant hedge fund managers and market timers were betting on nothing but clear skies in the bullion weather forecast.
Most market remained at a virtual standstill overnight as participants showed no interest in taking on large bets ahead of what promised to be an eventful session today: revised US GDP data and speeches by Ben Bernanke and Jean-Claude Trichet.