American Bullion -- Gold Prices Continue To Rise

Wednesday, February 03, 2010 at 12:00pm

A struggling US Dollar helped boost gold prices Tuesday, for the second straight day. Investors took full advantage of the cheaper gold bullion prices to add to their physical gold holdings.  In a report on Gold’s rally over the past two days, Citigroup technical analysts led by Tom Fitzpatrick in New York wrote,(Gold's rally) “again fits with the pattern we have seen for several months,” and continued, “Usually the rally lasts for three sessions before the market stabilizes. Further short-term gains, at least for the day ahead, are likely.”

The US Dollar dipped from a 6-month high Tuesday helping Gold bullion prices reach their highest level in almost two weeks. Gold prices were buoyed by what Wholesale gold dealers noted was a "strong physical demand" in Asia. The strong US dollar has kept gold bullion prices under pressure for the last few weeks and investors are still concerned over the weakened eurozone currency. Neil Mackinnon, economist at VTB Capital, reports on the situation by writing, “The euro can fall further. Sovereign debt risk will continue to be a key theme. The stresses created by the fiscal situation in Greece won’t go away quickly.”

After a week of correcting commodity and equity markets, investors are still concerned with EU members defaulting on their credit obligations and continue to watch for signs of positive action to bolster the eurozone currency. Focus will be on China and whether they will continue in their forcing of the People’s Bank to tighten fiscal policy. Investors are cautious while awaiting the U.S. jobs data report due out later this week. Gold prices are still expected to advance several hundred dollars this year. Purchase your gold bullion now, in the form of gold bars or gold coins. Buy physical gold, it's the safe haven investment it has always been, and it's the most liquid form of gold bullion.