Renewed fears about a possible Greek default may be supportive for gold.
(1888PressRelease) October 05, 2011 - MIAMI, FL - News broke over the weekend that Greece will not be able to meet a deficit target, despite austerity measures, leaving European officials racing to avert a Greek bankruptcy that would jeopardize the future of the euro.
Forecasts for this week already suggested that the price of gold was likely to rise but the worse-than-anticipated news from Europe will definitely affect the market. With markets closed for the weekend, gold was climbing this morning, October 3, settling around the mid- $1600s. On the one hand, disappointing news from Europe and fears of a recession should serve to push the price of gold upwards; on the other hand, a sinking euro will result in a stronger dollar, which may limit the gains gold can make. Equities are also falling, which is again supportive of gold; US stocks have suffered the worst quarter since 2008 and the global economy appears to be struggling, to say the least.
"On balance I would expect the current economic environment to be positive for gold as a safe haven, although gold bullion will be competing with the dollar for safe-haven status," says Bill Hionas of Pan American Metals of Miami. "However, we are also seeing a good deal of buying from bargain hunters, which is serving to push the price back up."
Pan American Metals of Miami was showing gold noticeably higher this morning at $1651. PAMOM is located in Miami, where it is ideally situated for investors from both North and South America. PAMOM's team of expert investors, brokers and traders is available to advise clients on their precious metals investments.
About us:
Pan American Metals of Miami, LLC is a group of traders, investors and brokers who combine 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.
Renewed fears about a possible Greek default may be supportive for gold. 
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