Gold price volatility is expected to continue this week, given current investor unease over financial markets, in particular European countries’ financial problems.

Gold has come within $15 of its December high in dollar terms, and is at records in euros and other currencies. Prices may move somewhat higher, and are expected to set new dollar levels later in May.

First, however, gold is vulnerable to some heavy downward drafts due to nervous investors taking profits on any sign of financial market stability.

Gold may see both higher prices and profit-taking this week. Prices may rise toward $1,230, while a plunge to $1,180 also is within easy range.

Investors have been stocking up on gold in the face of sovereign debt issues in Greece and other countries. Prices rallied from a low of $1,177.40 at the start of last week to $1,211.60 by Thursday, before ending the week at $1,202.50.

Combined exchange traded fund gold holdings reached a record 59.11 million ounces by 6 May, up 943,686 ounces in one week.

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