gold Currencies - 5th October 2010

The UPSHOT from last week's London Bullion Market Association conference in Berlin, writes Adrian Ash of BullionVault, was that there's more sound and fury about bullion in the financial pages than in the dealing rooms right now.

Several dealers I spoke to said business was quiet, if not boring. Gold's current rally, said one speaker, "punches above its weight in terms of significance." Another noted that at the start of September, when Dollar-gold surpassed its June high, volatility was at a 5-year low. (It still is. Silver Price volatility has fallen to a 3-year low as it broke three-decade highs.)

You can see this lack of frenzy in prices alone, in fact – but only if you don't focus on the Dollar alone...

BullionVault's Global Gold Index shows the price of gold against the world's top 10 currencies, weighted by GDP.