Prices to Buy Gold rallied to one-week highs at $1526 per ounce in Wednesday morning trade – a gain of 4.3% from last Friday's low – before falling back as world stock markets also cut their rally.
Major-economy government bonds fell, nudging interest rates higher.
The commodity market were mixed following the announcement of 25% hikes in the margin requirements on crude oil contracts, but the Silver Price was set at $39.18 per ounce at Wednesday's London Fix.
Silver has now regained a third of its losses since falling over 30% from a 31-year peak of $48.70 at the end of April.
"We can get out of this difficult situation only if we properly rebuild the foundation, not just help without Greece doing anything," said German chancellor Angela Merkel today, stressing "Greece's stability and eagerness to reform" if a further bail-out package is to go ahead.
The price to Buy Gold in Euros hit a new high for the week – less than 1.5% off its record high – as the Euro continued to fall on the forex market, taking the single currency's losses to 3% against the US Dollar since last Wednesday.
Greek newspapers today claimed a fresh €60 billion loan from the IMF, European Union and European Central Bank will demand "bold" privatizations of state-owned assets. But arranging new loans to Greece is "a bit like rearranging the deckchairs on the Titanic" says currency strategist Steve Barrow at Standard Bank.
"Eventually Greece has to restructure," agrees Alan Ruskin at Deutsche Bank. "It's just a question of first ring-fencing all the potential losers."
Yields on Greek 10-Year bonds rose to 15.5% on Wednesday morning, up from 15.4% a day earlier.
Meanwhile the Gold Price in Sterling fell throughout the morning, slipped from a 1-week high of £932 per ounce as the British Pound rose sharply on the Bank of England's latest Inflation Report forecasts.
"There is a good chance that, if utility prices rise further later in the year, inflation will reach 5%, before falling back through 2012 and into 2013," said BoE governor Mervyn King in his quarterly press conference.
The UK's key interest rate has now been held at 0.50% for 25 months running. Earlier this month, the governor told the European Parliament that low interest rates are necessary to help governments finance their "high-level indebtedness".
UK interest rates "are more likely than not to start rising gradually late in 2011," believes Howard Archer, chief UK and European economist at IHS Global Insight.
"However, Mervyn King has highlighted that both the growth and inflation outlooks are highly uncertain, thereby suggesting that the Bank of England is keeping its options fully open on exactly when it will start lifting interest rates."
"[China's] inflation is too high and will keep the policy bias in favor of more action over the next few months," said Brian Jackson, emerging markets strategist at Royal Bank of Canada, this morning after Beijing released higher-than-expected inflation figures for April.
"We expect another two rate hikes and further Yuan appreciation against the Dollar."
Consumer prices rose 5.3% year-on-year, according to official figures. Producer prices rose by an annual rate of 6.8%.
China's premier Wen Jiabao has set a target of 4% for consumer price inflation. Bank-savings deposit rates in China – the world's second-largest market to Buy Gold – are currently held at 3.25%.
"A true gold standard favors no one nation, but synchronizes the balance of payments between all," said Jim Grant, publisher of long-running finance journal Grant's Interest Rate Observer, calling for a return to gold-backed money in a speech given in Edinburgh on Tuesday.
"If the Dollar was as good as gold, other countries would want to buy it," said US presidential candidate, billionaire publisher Steve Forbes, in an interview on Monday.
Looking to Buy Gold for your own secure, low-cost, personal reserves today...?