Gold slides slightly on profit taking and rising dollar.
(1888PressRelease) October 13, 2011 - MIAMI, FL - Gold slipped slightly today, October 13, following some profit taking and a rising dollar. We should expect a certain amount of volatility as changing news, or even people's perceptions of changing news, affects the market. Gold tends to move inversely to the dollar; a low dollar makes gold more affordable in other currencies and vice versa. The dollar can swing on the slightest hint of any issue; with a solution to the continuing crisis in Europe looking hopeful one minute and less hopeful the next, we should expect the dollar to be traveling up and down the currency scale like a yo-yo.
"The point to remember, as far as gold is concerned, is that these small corrections are healthy and normal," says Bill Hionas of Pan American Metals of Miami. "They do not indicate a bubble that has burst, nor do they affect the strong overall trend upward that gold is taking. Gold now has a firm base of $1650 and is strongly underpinned by seasonal, physical demand and by investment demand."
The situation in Europe is something of a double-edged sword as far as gold is concerned. Ongoing concerns increase the need for gold as a safe haven while, at the same time, fears regarding an uncertain economic future can provoke investors to liquidate, causing them to sell their best-performing asset, gold. The reverse is also true; if the European issues were to be settled satisfactorily, there would be no need for liquidation, but less need for a safe haven also. One might wonder then if the euro zone crisis should affect gold hugely at all! What it most definitely will do, however, is affect the US dollar as it moves against the euro; this can and will affect the price of gold.
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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.
Gold slides slightly on profit taking and rising dollar. 
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