Gold turns slightly lower on profit taking and less optimistic news from Europe.
(1888PressRelease) January 17, 2012 - MIAMI, FL- Friday 13th saw gold prices turn a little lower, not surprisingly considering the impressive surge that the market has seen since late December. Predictably, there was some profit taking while gold also had to combat a dollar that rapidly recovered strength as the previous day's guarded optimism over Europe was shot down by S&P's downgrade of France's triple-A credit rating. With further rating cuts expected Friday, this news sent an already struggling euro plunging again, resulting in gains for the greenback.
Despite all that was thrown at it, gold still managed to hold its own above $1630. With the Lunar New Year just around the corner, physical demand from Asia is expected to increase; gold is traditionally given as gifts during the New Year celebrations, which begin this year on January 23. Investment demand also remains fairly strong. Investors who have bought gold bullion for wealth protection are interested in the long term and are neither likely to sell at the first significant peak nor to panic at a normal pullback.
"We would expect to see some continuing volatility in the market," says Bill Hionas of Pan American Metals of Miami. "However, indicators are strongly supportive of an overall upward trend."
Gold has continued to outperform almost every other asset and offers an excellent hedge against inflation. Gold bullion is the best-performing asset during difficult economic times. The intrinsic value of precious metals bullion makes it a unique investment, particularly for those investors looking for long-term growth rather than short-term profits.
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.