The gold market traded sharply higher for most of the session as investor safe haven buying supported the metal. With more problems being reported in the European banking system, ongoing turmoil in the financial markets with steep sell offs in world equity markets has certainly escalated the fear factor over the global economy which has benefitted gold. A lack of global financial market confidence supported gold this session even though sharp gains in the Dollar and a liquidation wave in physical commodities suggested a deflationary psychology was starting to take hold. Talk that central banks may coordinate a rate cut may have also been a factor supporting gold prices.