American Bullion -- Buy Physical Gold On Pullbacks

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Monday, March 08, 2010 at 12:00pm

March 8, 2010 Los Angeles – The price of Gold closed lower on Monday due in part to technical selling. This presents an ideal buying opportunity as Gold bullion prices are next expected to revisit their 2010 highs. The euro eased and the dollar traded higher on Monday after Greek Prime Minister George Papandreou warned that if the Greek crisis worsened it could cause a domino effect that could lead to a global financial meltdown.

The price of Gold came under pressure following assurances by Jose Manuel Barroso, the head of the European Commission that the leading partners within the European Union, would come through if Greece needed more help. "Greece can count on this solidarity," Barroso emphasized, "We have always shown solidarity to all EU member states and we'll show that in the future."

The European Commission will be floating proposals to create a "European IMF" on Tuesday. Economic and Monetary Affairs Commissioner, Olli Rehn, will report to the full commission tomorrow the results of continuing talks being held on the issue. German Finance Minister Wolfgang Schauble, told the weekend Welt am Sonntag newspaper that "for the internal stability of the euro zone, we need an institution that has the experience and power of the IMF."

The price of Gold is trading near record highs in most currencies and investors continue to purchase physical Gold on pullbacks. "Technically gold still looks healthy," says one Hong Kong dealer in a note today, predicting that the Dollar Gold Price will "re-attempt to break above last week's high at $1145."

 The result of the January meeting of the US Federal Reserve Open Market Committee reaffirmed its commitment to continue the easy monetary policy that promises to help Gold bullion prices reach new record highs. The Federal Reserve's policy has kept rates near zero and allowed the price of Gold to increase 24 per cent in 2009. Gold has been showing tremendous strength this year as well, and investors are forecasting $1500 Gold in 2010.