Despite calls for the death of the gold bull market, the precious metal managed to climb $21 higher on Tuesday to settle above the $1,600 psychological level.

Red has been the color of choice for gold and silver this week.

Early Wednesday, the euro dropped to under $1.30, its lowest level since January. The decline came after Italy paid a euro era record yield of 6.47% to sell five-year notes. Last month, Italy paid an average yield of 6.29%, which shows that despite the EU summit, there has been very little change in the euro debt crisis. With the euro still on the edge, investors are seeking safety in the US dollar. Gold prices dropped below $1,600, while silver broke its $30 support level.

After a 20% fall in September, the technical picture for gold is improving.

The past couple weeks have been a somewhat trying time for precious metal investors.

On Monday, banking giant Goldman Sachs announced it is staying long gold. Due to low real interest rates, slower US economic growth, and rising debt, the bank has also raised its gold forecast for 2012.

Gold continues to rise as European debt worries linger on in the financial markets.

As we have previously discussed, the gold miners continue to lag behind bullion prices. In the past six months, the SPDR Gold Shares ETF has increased by nearly 10%, while the Market Vectors Gold Miners ETF has declined by 5%.

As we have previously discussed, the gold miners continue to lag behind bullion prices.

After numerous jukes and headline rumors, the world finally received a so-called EU solution. After threatening with a total insolvency Greece situation, European leaders were able to talk bondholders into accepting a 50% haircut on Greek debt.

On Monday morning, gold futures for December delivery climbed above $1,650, while silver futures closed in on $32. Gold and silver still remain in a trading range while markets wait on a European debt solution.

It is no secret that precious metal miners have lagged behind bullion prices.