The wholesale price of gold in London leapt at the start of Thursday's trade, rising $45 per ounce to hit one-week highs above $1,320 after the U.S. Congress reached a short-term deal on the government's debt limit.
U.S. dollar gold prices continued to hover around $1,580 an ounce Monday morning, in line with last week's trading, while silver dipped back below $29 an ounce after making slight gains in Asian trading.
Gold buying by the global central banks will hit a new high this year of more than 500 tons up from 465 tons in 2011, according to data compiled by the World Gold Council. Only Tuesday the Bank of Korea announced that its gold reserves rose by 14 metric tons.
The wholesale market gold price jumped at the start of New York trade on Thursday, cutting the week's previous 3.3% dive to 5-month lows in half as the euro fell and euro zone stock markets slumped once again.
Most commodities gained this morning as lingering optimism related to future demand was still manifest in the wake of China’s easing of bank reserve requirements and following perceptions that the European deal with Greece will be good for the sector in the near-term.
Precious metals – with the exception of palladium – opened mildly higher this morning in New York as players awaited US GDP and consumer sentiment data with a degree of caution and as profit-takers stood by to possibly pull the trigger.
Gold and silver have eked out gains in Asia and European after yesterday's slight sell off. Asian central banks worried about their large dollar and euro holdings look set to put a floor under the market and will be buyers on dips in the price.