Los Angeles, CA – February Gold futures prices hit a fresh six-week high of $1676 an ounce, as the U.S. dollar traded lower Monday morning and crude oil prices traded higher near $100.00 a barrel. Silver also traded bullishly at $32.45 an ounce following Gold’s upward movement in price.
Some of the key points to the upswing of price in precious metals are current investor sentiment regarding the European sovereign debt crisis. Strong demand for German debt auctions, and a planned meeting by EU officials to decide on what terms a Greek debt restructuring would be an acceptable part of a second bailout package has investors believing that the worst of the financial debt crisis is behind them. This optimism has boosted the Euro currency, which has been a contributing factor for Gold and Silver to remain bullish. In addition, The EU has agreed to implement an embargo on Iranian oil, causing political tension. These types of Geopolitical issue can trigger safe-haven investing, which includes buying precious metals such as gold and silver.
Short covering, when investors who had been betting that the price in gold would pull back, also might be a strong contributor in Gold’s recent rally. “Gold is reaching another technical area” said George Gero, senior vice president at RBC capital markets. Gero believes uncertainties such as Greece needing to secure a deal with private bondholders on how much loss they will take on bond swaps could have investors running to safe-haven investing in gold. The rebounding Euro on Monday pulled the dollar lower, also helping the price of precious metals to go higher. On a 6-week high, gold is looking to break above investor psychological resistance at $1700 an ounce. Many investors will look toward this week’s meeting of the Federal Reserve’s FOMC to gain insight on overall U.S. economic health.
Safeguard your retirement portfolio from turbulent economies and geopolitical tension; by investing in precious metals such as gold and silver, you can protect your wealth from inflation and a weakening U.S. Dollar. For more information on a Gold IRA or Silver IRA, please contact American Bullion today at 1-800-326-9598 or email us at email@example.com