American Bullion -- Safe Haven Buying Pushes Gold Prices Higher

Wednesday, June 09, 2010 at 05:57am

June 9, 2010, Los Angeles – Safe haven buying pushed the price of Gold to a new all time high on Tuesday as the dollar recovered against the euro in afternoon trading. The euro has lost about 17 per cent against the dollar since the beginning of 2010.

Physical Gold remains one of the wisest investments for astute investors. The purchasing of Gold bullion as an alternative to currencies is fueling the bull market in Gold.

"With the latest shocks to global markets, currencies and equities, people understand the impact and effects of the financial crisis are very far from over," said Jason Toussaint, managing director of the World Gold Council's Exchange Traded Gold business.

"There is sometimes a tactical move into gold, but the greater trend, borne out by the data, is increasing buying of gold for the long-term, rather than as a short term hedge."

Officials have finished the European Financial Stability Facility, but many uncertainties remain."The market seems largely unimpressed with the European finance minister's decision yesterday to formally initiate the special purpose vehicle," Marc Chandler, head of currency strategy at Brown Brothers, wrote in a note.

"Many observers are skeptical that new debt can really be an effective remedy for countries that have too much debt." Economists are forecasting that the European Central Bank will leave its interest rate at its current record low when it meets on Thursday.

Federal Reserve Chairman Ben S. Bernanke will be testifying before a House panel on Wednesday after saying that the central bank will probably raise interest rates before the economy returns to full employment.

“The Fed will be tightening before the ECB with the U.S. economy recovering at a faster pace,” said Adam Carr, a senior economist at ICAP Australia Ltd. Gold bullion continues to be investor’s favored safe haven. Buy Gold coins or Gold bars today.