Gold closed marginally higher Wednesday based on bargain hunters buying the dip.
(1888PressRelease) November 23, 2011 - MIAMI, FL - With the Thanksgiving holiday making for a shortened trading week in the US, gold prices were still being hampered by a stronger dollar but ended within touching distance of $1700. Many investors may be waiting until after the long weekend before making a move as current volatility has created a nervous atmosphere in the market.
The US dollar index hit a seven-week high Wednesday, and spot gold closed at $1694.50. The market was further affected by news that a German government bonds auction only managed to sell 65% of its bonds. Germany is the strongest economy in the EU and this news suggests that debt contagion is indeed raging through Europe. Needless to say this has prompted further doubts as to whether there is indeed a future for the euro as a common currency and has resulted in a sell off of assets, including precious metals. The news also makes the US dollar more attractive, despite the fact that the US has its own serious debt issues.
"The European situation seems to be worsening daily," says Bill Hionas. "As a result, the US dollar becomes more attractive to investors. However, as debt issues in the US also continue, it is only a matter of time before investors seek the trusted safe haven of gold bullion."
Meanwhile, gold prices still offer a potential bargain for those investors wishing to add to their bullion holdings.
About Bill Hionas:
Bill Hionas is CEO of Pan American Metals of Miami, LLC, a group of traders, investors and account executives that combines many years of experience to help clients invest in bullion. PAMM provides an individual investment service and is based in Miami, Florida for convenient access to both North and South American investors.
Gold closed marginally higher Wednesday based on bargain hunters buying the dip. 
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