Price of gold falls back to around $1620 an ounce as market remains uncertain

The price of an ounce of gold fell slightly in uncertain markets this morning, back to around $1620 an ounce following yesterday’s election in Greece which many are seeing as positive for Europe’s debt situation and gold, the safe haven asset sold off.

Latest Gold Price

Gold prices ended up 3.2 percent over the week to $1,627 an ounce as the prospect of support from Western central banks improved. However, at the current level, gold prices are 9 percent below this years peak of $1,781 per ounce touched in February. Silver moved up by a modest 1.7 percent.

Gold – Safe Haven Asset

Despite conditions ripe for a major upsurge, gold prices have generally struggled to gain traction. Escalating uncertainties surrounding global growth in general and Europe, in particular, have capped the upside as investors are undecided whether gold should be treated as a safe haven asset or risky asset.

Analysts say the global economic turmoil is likely to spur uncertainty in gold prices, which has already made it a risky asset for investors.

Price Forecast

Societe Generale forecasts gold prices averaging $1,700 per ounce and $1,760 per ounce in the third and fourth quarters of 2012, respectively.

According to a weekly gold survey, dated June 15, 2012, conducted by Kitco, a precious metals retailer, out of 23 participants 18 respondents voted for prices rise in the forth coming week; while three see gold prices down, and two were neutral.

Market participants include bullion dealers, investment banks, futures traders, money managers and analysts.

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Price of gold falls back to around $1620 an ounce as market remains uncertain