The value of gold as a currency base has been debated in recent months as Russia has spent over $7 billion in 2014 to increase its holdings in the precious metal. While some commentators alleged that the move is a preparation for economic war, countries such as Belgium began returning their holdings from abroad and the value of gold futures rose in what appears to be the market's response to the Greek debt crisis.
Precious metals are nearing their multi-decade lows as the stronger dollar, safer financial markets and lack of inflation in the advanced nations have all undermined demand for the non-yielding passive and low-liquid assets.
With the US dollar set to advance on Fed tightening, gold is slipping, gradually losing its ‘safe haven’ appeal.
Gold is not a 'safe haven' anymore as the US suspects its prices have been manipulated, while uncertainty in the energy markets has rendered US bonds, equities and currency a better choice for investors.
Gold rose on Monday, retaking its gains after a dramatic slide on Friday, February 6.
Belgium is planning to retrieve 200 metric tons of gold, deposited to United Kingdom storage in the 1930s, out of fear of Nazi theft.
Gold edged up Wednesday, boosted by expectations that Greece is nearing a debt deal with its international creditors.
February futures on spot gold and silver in New York have dropped on optimistic news coming from Greece and China.
The Russian central bank has increased its gold purchases, while the precious metal continues to attract emerging market investors seeking to diversify their assets due to turbulence in global markets.