LONG-TERM OUTLOOK SUPPORTS GOLD AS BUYING OPPORTUNITY
The price of Gold has been heavily affected by the eurozone crisis this week. Sterling Smith at Country Hedging Inc. commented on the influence Europe has had on Gold, saying, “The developments in Italy have perked up the dollar, and that is pushing Gold down.” Concentrating on Gold’s importance as an investment, LGT Capital Management’s Bayram Dincer said, “The fundamental investment case for Gold is still intact.”
Optimism for Italy’s economy was high this morning as 7 billion euros’ worth of debt was auctioned, just short of the initial target of 8.5 billion euros’ worth of debt. “Italy was not able to raise the maximum amount they wanted to, but the fact that they managed to sell this much at the end of the year should be taken as a positive sign,” said Eric Wand at Lloyds TSB Bank PLC. Italy is currently in its fourth recession since 2001.
Although there has been a recent correction in the Gold price, the viewpoint is still positive for the asset. James Moore at TheBullionDesk.com said, “Precious metals have been hit, as traders and investors continue to lock in profits and bolster cash positions in the run-up to year end. But, it is worth remembering that despite the recent correction, Gold is still on course to post its 11th consecutive year-on-year gain. And that, given the ongoing debt problems facing many economies, record-low interest rates and the highs in Gold this year, those with a longer-term outlook could view current levels as a buying opportunity.”
At noon, the APMEX precious metals spot prices were:
- Gold - $1,537.00 – Down $28.20.
- Silver - $27.10 – Down $0.21.
- Platinum - $1,364.40 – Down $26.00.
- Palladium - $624.30 – Down $23.90.