Gold holds its ground in the wake of news from Washington.
(1888PressRelease) August 01, 2011 - MIAMI, FL - The world breathed a collective sigh of relief after Washington announced last night that agreement had been reached on a bipartisan deal to raise the debt ceiling and avoid default. The news will come as little surprise to most; while the eleventh hour decision caused considerable nervousness in the markets, not to have reached a deal would have been political and economic suicide. However, the announcement that a satisfactory agreement had been reached in time to stave off a default understandably caused a slight downslide in the price of gold, which had risen sharply last week on safe haven buying.
Nevertheless, it seems that the precious metal may well hold its ground; there are many remaining issues to support a continued bull run for gold. Despite the promised agreement, there are still concerns over the possible loss of America's triple A credit rating and these concerns will not necessarily be laid to rest any time soon. A drop in the nation's credit rating would cause interest rates to rise and would have a domino effect on the economy. It is also doubtful whether the agreement, which still has to be passed in the House, actually offers much to benefit America's fiscal situation in the long term.
At the same time, the debt crisis in Europe continues and demand for gold from Asia continues to surge. The agreement in Washington is certainly not going to solve all the global issues overnight and there are many factors supporting a continued rise for gold.
"Gold represents safety in a time of continuing economic uncertainty," says Bill Hionas of Pan American Metals of Miami. "Prudent investors will be adding to their gold bullion holdings; gold still has a lot of things going for it."
Pan American Metals of Miami showed gold today at $1628. PAMM offers investors both fully-funded and leveraged positions.
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.
Gold holds its ground in the wake of news from Washington. 
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