Both spot gold and gold futures have risen and fallen today (November 28th), with investors looking to buy gold perking up when the metal nears the $800 per ounce mark.
Spot gold in fact sunk below $800, but then climbed back up toward $803, thanks to a bout of bargain-hunting investment that, some claim, proved an underlying belief that the metal is destined to retain value far in excess of $800 per ounce.
Gold futures for December delivery themselves dropped more than $11 to hit $802.90 per ounce, but its slippage looks likely to halt now that its value is low enough to again attract bargain hunters.
Yukuji Sonoda, precious metals analyst at Tokyo's Daiichi Commodities, told Reuters that many expected gold to breach the $850 mark claiming that it was always likely to find support at a lower level and bounce back.
"As long as the gold price holds above $800, there is no problem," he said.
Weaker oil prices and a stronger dollar have been factors in reducing gold's safe-haven appeal and driving its price down, but at current price levels, the incentive to buy gold on a bargain investment looks likely to drive it back up.