Gold prices are being decided by the latest news from Europe.
(1888PressRelease) November 18, 2011 - MIAMI, FL - The gold market seems to be being totally determined by current speculation on the EU debt crisis. If there is reassuring news then up goes the euro, down comes the dollar and up goes gold. If there is worrying news then the reverse happens.
Unfortunately, there should always be 'worrying' news. No one has suggested a feasible solution to the euro zone's massive problems. A change of leadership in the two most severely affected countries is not a magic wand that will make their debt disappear. Austerity measures that involve significant pay cuts, job losses, pension cuts and / or increased taxes are understandably extremely unpopular and likely to be difficult to put into practice.
Additionally there are very real fears of contagion, not just within the EU but globally. Europe is a consumer and many countries have a vested interest in maintaining a healthy European economy. At the same time, the US has its own budget deficit to sort out and there is considerable doubt as to how well that will play out also.
"There are many economic factors underpinning investment demand for gold," says Bill Hionas of Pan American Metals of Miami. "Meanwhile, physical demand is also strong."
The main issue, as far as the gold market is concerned, is just how bad the European situation needs to get before gold returns to a 'normal' pattern of behavior and becomes sought after as a safe haven. In the meanwhile, savvy investors are buying the dip, then sitting tight as they wait for prices to rise again.
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.
Gold prices are being decided by the latest news from Europe. 
Satisfied Users & 
Approved Press Releases
Print
Email
Report Spam