Gold Hits 4-Week High on Technical Trading Momentum

Los Angeles, CA – Gold prices hit a fresh four week high at $1645 an ounce on renewed safe-haven investment interest and near-term technical momentum. News earlier this week of a weaker U.S. dollar index and higher crude oil prices pushed the precious metal above its near-term chart technical resistance of $1643.70. March futures for Silver also traded higher $0.24 to $30.13 an ounce.

The precious metal upswing in price comes from reports of improved physical demand for gold and silver from Asian countries as the new trading year gets under way. In addition, investor risk appetite has increased in the U.S. stock market this week causing precious metals to benefit.  As crude oil is still trading above $100 a barrel, higher crude oil prices typically suggest a bullish gold market. “Outside market” factors such as the value of the U.S. dollar index going lower and crude oil prices going higher will remain important roles on the bullish outlook of gold and silver in the months ahead.

Since the beginning of 2012, there has been no new ground breaking news out of Europe and its sovereign debt crisis; however, the European Central Bank will meet Thursday to discuss printing more money to lend to troubled euro member countries in an effort aid the over two-year euro zone fiscal turmoil. If more negative economic news comes to light in the same negative fashion as in 2011 from the Eurozone, gold will continue to be sought after as a safe-haven investment and demand for the precious metal will continue to rise.

Take advantage of the recent pull back in prices of gold and silver before they move higher again; safeguard your wealth by purchasing gold and silver for home delivery or roll over a portion of your retirement account into a Gold IRA or Silver IRA. To receive information on gold and silver, please call American Bullion at 1-800-326-9598 or email us at today!