The last three weeks gold price volatility had become pretty extreme with several +/- $80 days. However the last couple of days the market seems to have calmed.

We tested the $1800 level for the third time in five days, and got the same response – a quick rejection of that level and a bounce to the $1830 level.

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The same drivers for gold since the start of September are in place with all eyes on Europe. Greece now looks almost certain to default, the only uncertainty is whether this comes quickly or it can be drawn out. As a result gold in Euros is still near its all time record highs.

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In £ terms gold is only £20 off its all time closing high.

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It seems gold is in a holding patten really until the Fed’s 2 day meeting concluding on 21st January where investors will get a better handle on just how much money printing is coming.

Gold:silver ratio is at 1:44.