Gold prices have recaptured the $1,510 level

The gold price advanced Wednesday morning, rising $7.70 at $1,509 per ounce after the Greek Parliament’s passed sweeping austerity measures. The price of gold held its gains after politicians in Greece passed a $112 billion austerity package that paves the way for the next round of bailout funds from the European Union and the International Monetary Fund.

Gold prices have recaptured the $1,510 level in recent days amid a broad-based rally in global financial markets. After another deflation scare – one that sent the ten-year U.S. Treasury yield to 2.9% – stocks and commodities have regained their footing.

Despite the recent rally in the gold price, the Global Precious Metals team at TD Securities remains cautious on the yellow metal over the short-term, noting that “Gold and silver have been consolidating recent losses in a fairly narrow range and it’s difficult to see a rally eventuating at this point.”

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