The Gold Investor Index, which tracks buying and selling on the world's largest physical gold market for private investors online, fell to 54.9 in January, down from a 12-month high of 58.3 a month earlier and its lowest reading since September.
Whether the repatriation of only some 20% of Germany's gold reserves from the Federal Reserve Bank of New York and the Banque of Paris back to Frankfurt manages to allay German concerns remains in question.
You need to find the quality management teams with money in the treasury, the ability to raise more and having the advanced projects that are well along the development path towards a mine that is going to be a long life, lowest quartile all-in cost producer.
Investors seeking leverage to precious metals should focus on junior resource companies who own the world’s undeveloped gold and silver deposits as they provide the best exposure to a rising precious metals price environment.
Spot market gold prices looked to be headed for a third weekly loss in a row Friday lunchtime in London, after failing to break above $1,700 an ounce, while stocks and US Treasuries were little changed on the day.
Gold remains unchanged on Wednesday and is likely being supported by the realization that the Greek bailout deal may not be the success it was hailed to be, and also the time is running out for negotiations on the US fiscal cliff.