News of a fiscal pact in Europe boosts euro and gold.
(1888PressRelease) February 01, 2012 - MIAMI, FL - After a slight setback at the beginning of the week, gold was firmly back on track, Tuesday, reaching a seven-week high. Both the euro and the price of gold benefited from the news that euro zone members had agreed on a pact for tighter fiscal controls that will result in the setup of a permanent 500 billion euro rescue fund. At the same time, Greek Prime Minister Lucas Papademos stated that he seeks an early agreement with Greece's creditors. Greece desperately needs the next bailout to avoid default.
This news was sufficient for the euro to recover and for gold prices to head firmly upward once more. Gold bullion is on track to make the biggest gain since August 2011 as January draws to a close. Investor confidence has been fully reinstated in the precious metal following a rush to liquidate in December. $1800 will likely be the next level to be tested by gold as it makes its way upward. Silver has also benefited from the market's renewed confidence, reaching just over $34 an ounce, Tuesday.
"Many people were pessimistic in December as a rush to liquidate caused gold to fall in price," says Bill Hionas of Pan American Metals of Miami, a South Florida precious metals company. "There were suggestions that gold's 11-year bull run was about to come to an end. January, however, has seen a complete turnaround in investor sentiment; we are on track for an 11% rise in the price of gold."
Pan American Metals of Miami, LLC is a group of 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.