Gold Rising on Encouraging News from Europe says Pan American Metals of Miami

Top Quote Gold prices rallied as more optimistic news emerged from the European summit meeting. End Quote
  • (1888PressRelease) October 25, 2011 - MIAMI, FL - As the week began, with slightly more encouraging news emerging from the European summit, gold prices began to rise accordingly. Interestingly gold is now moving, apparently, in tandem with the euro and with stocks and equities. It is thus moving inversely with the US dollar, which is normal since a rising dollar makes gold more expensive in other currencies. What is less usual is that gold is rising as risk of major default in Europe decreases. Given its normal position as a safe haven, gold should be increasing in value as risk increases and decreasing as risk decreases; however, this is clearly not the case at present.

    Some analysts are suggesting that this means gold is no longer attractive as a safe haven. Yet gold is really the only safe haven out there, particularly as the dollar slides. One has to ponder as to why gold, if it is truly a safe haven, seems to be behaving out of character. One possible answer is the euro / dollar relationship. As news from Europe is more encouraging, the euro gains and the dollar loses. Following its 'normal' relationship with the dollar, gold therefore rises. The other, somewhat unusual situation is that gold seems to be shadowing equities. It could be that a renewed confidence, perhaps based on optimistic news from Europe is simply encouraging investors to venture into all commodities, precious metals included.

    "Gold continues to offer a hedge against inflation and wealth protection," says Bill Hionas of Pan American Metals of Miami. "At present we are seeing more physical demand pushing up the price of gold bullion as we enter India's festival season."

    Pan American Metals of Miami was showing gains in all four precious metals today, October 24, with gold up $9 and significant gains in platinum and palladium.

    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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