American Bullion -- Gold Bullion Prices Rally To 6 Week High

Tuesday, March 02, 2010 at 12:00pm

March 2, 2010, Los Angeles – Gold bullion prices rallied to a 6 week high on Tuesday as investors sought the safe haven of physical gold over currencies. Purchasing Gold coins and Gold bars has been a favorite strategy of astute investors looking for both liquidity and safety in their portfolios. Gold's move to much higher levels has been forecast for several months but today's push through important overhead resistance makes it much more likely to happen sooner than later.

MKS Finance, a division of the Swiss refining group in Geneva, commenting on Gold's movement, if U.S. and euro fiscal problems persist, "The Dollar's fundamental problems remain a current issue, and while the precious metals are hindered by the greenback's current strength, one could ask what will be the precious metal's long term prospects should Eurozone and American fiscal worries continue."

Gold priced in both sterling and the euro held near lifetime highs struck on Tuesday. Sterling’s weakness is purported to be due to fears of an election stalemate between the Labour and the Conservatives parties. Investors are concerned about how the UK's rising deficits will be funded after the election. Greece announced on Tuesday they will postpone their next bond auction until after Wednesday’s announcement of almost 5 billion euros in additional deficit cutting measures.

Greece is under increasing pressure from the European Union and investors to implement more austerity measures before requesting aid from the other euro zone member nations. German foreign minister and vice chancellor Guido Westerwelle said on Tuesday, "Before there are discussions about aid, we expect Greece to complete its homework on consolidation policy I regard all other discussions at the moment as inappropriate." Fortis Nederland's Wallace Ng summed it up best when he said, "The status of gold is very clear, it's security against any financial turmoil in any country." Purchasing Gold bullion is always a good choice.