A strong dollar and rumors that commodity contracts may be limited combined to cause a drop in the price of gold today.
(1888PressRelease) October 19, 2011 - MIAMI, FL - Following yesterday's rise in price, today saw another sharp correction for gold. The euro dropped sharply, making for a stronger US dollar and causing a 'knock-on' effect for gold. The strong US dollar makes gold more expensive to own in other currencies, therefore forcing down the price as investors outside the US start to bail. Gold still has a strong value as a safe haven but investors vary in their attitudes to owning gold. Those who are looking for long-term security will hold onto their gold, even taking advantage of these corrections to add to their holdings; on the other hand, those who believe in trading and want to show profits may well exit their positions.
"This is another buying opportunity for serious, experienced investors who wish to amass and retain their stocks of gold bullion," says Bill Hionas of Pan American Metals of Miami. "If gold is used as a safe haven, then it will not be traded but will be left to do its job, which it does extremely well."
Another factor affecting the price of gold today is the rumor that the Commodities Futures Trading Commission may introduce legislation that will limit the number of commodity contracts that any investor can hold in a number of commodities, including precious metals. This has caused some traders to reduce their net long positions and is likely contributing to today's drop in price. However, all the fundamentals still support gold and savvy investors will realize this and maintain their bullion holdings, or take advantage of the price dip to increase them.
About us:
Pan American Metals of Miami, LLC is 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.
Debbie Bailey
Executive Administrator
Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com
Website: http://www.panamericanmetalsofmiami.com
A strong dollar and rumors that commodity contracts may be limited combined to cause a drop in the price of gold today. 
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