Gold Closes Higher on Safe-Haven Demand and Bargain Buying says Pan American Metals of Miami

Top Quote Gold sustained earlier gains due to safe-haven demand spurred by the Iran crisis and increased buying activity. End Quote
  • (1888PressRelease) January 04, 2012 - MIAMI, FL - Gold closed Wednesday solidly higher, regaining some upside momentum following a sharp rise on Tuesday. Bargain hunters, the potential crisis in Iran and increased physical demand from Asia have all been supportive of gold, although a stronger dollar limited gains.

    Ongoing concerns over the euro zone benefited the dollar as Spain was reportedly applying to the IMF for loans to restructure its banking system and the cost of Spanish debt rose to 5.37%. Germany also held a bond auction; yields were low but there was limited interest in buying. It also appears that central banks are stockpiling funds rather than lending them out to banks and thereby releasing the money into circulation. This would obviously defeat the object of the exercise with regard to the ECB loans. The US dollar benefits from weaknesses in the euro zone and may serve to cap the rise of gold bullion.

    "The encouraging news, as far as precious metals are concerned, is that gold is rising on safe-haven demand and buyers are stepping in, negating any profit taking," says Bill Hionas of Pan American Metals of Miami. "Physical demand from Asia is also picking up again. On the other hand, ongoing debt problems in Europe are keeping a cap on the euro and causing a stronger dollar."

    Gold closed the US trading day comfortably above the $1600 level, suggesting that the recent rally should be sustainable based on both safe-haven and physical demand.

    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.


    Press Contact

    Debbie Bailey
    Executive Administrator
    Pan American Metals of Miami, LLC
    Email: dbailey ( @ ) investpanam dot com

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