Spot market gold fell to its lowest level since August 2010 Wednesday, trading as low as $1,224 an ounce. In contrast with April's price drop, gold's recent fall has not been met with a surge in demand for physical bullion.
Precious metals rallied in London on Tuesday morning as European stock markets also bounced with commodity prices. The U.S. dollar eased back on the currency market, as did major government bond yields.
Wholesale gold bullion prices continued to hover near $1,380 an ounce Friday, while silver traded either side of $21.80 an ounce and stocks and commodities ticked higher, regaining some of the ground lost this week.
After gold lost $84 an ounce last Friday, we can conclude the beneficiaries were not gold investors who panicked and sold, but rather those who are fighting to preserve the reputation of the U.S. dollar and the fiat currency model that underpins the global economy.