A lower dollar index enabled gold prices to hold their ground Wednesday, despite some profit taking.
(1888PressRelease) January 19, 2012 - MIAMI, FL - Gold is continuing to be linked to the euro, sharing its fate and is moving inversely to the dollar. However, a strong deterioration in the European situation could well lead to a reversal of this; we have already seen evidence of increased safe-haven investment in gold bullion as concerns about sovereign debt increase.
Gold is also likely to benefit from news of further monetary easing. The IMF reportedly plans to increase its lending by as much as $500 billion in order to assist economies, not just in Europe but worldwide, that have been adversely affected by the European crisis.
"Monetary easing is generally beneficial to the price of gold," says Bill Hionas of Pan American Metals of Miami. "The medium- to long-term effects are a depreciation in the value of fiat currencies, leading to inflation. Obviously owning gold bullion or coins is the investor's best defense against inflation."
The IMF can make three-year loans to central banks at low rates; so far, however, much of the money that has been put into the system in this way is still deposited in the ECB and is not actually making its way into the economy.
Another factor that is capping the recent gains made by gold has been the announcement of an increase in levies on the importation of gold and silver to India. It remains to be seen whether or not this will have a serious effect on imports to the nation that is currently the largest net importer of gold in the world.
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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.
Website: http://www.panamericanmetalsofmiami.com
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Debbie Bailey
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Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com
Website: http://www.panamericanmetalsofmiami.com
A lower dollar index enabled gold prices to hold their ground Wednesday, despite some profit taking. 
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