American Bullion -- Gold Bullion Assets Store Value

Monday, June 14, 2010 at 06:21am

June 14, 2010, Los Angeles – News of a sharp drop in US retail sales sent Gold bullion prices higher on Friday as the euro fell against the dollar. The price of Gold has gained for three straight weeks with concerns over the economic recovery firmly supporting rising prices.

Investors are diversifying their investment holdings into physical Gold bullion as the price of Gold continues its climb. "Demand for gold as a safe haven and an alternative currency remains, though maybe not in the heightened way it was a few weeks ago," said Credit Agricole analyst Robin Bhar.

"This trend shows that medium to long-term investors see further risks on the horizon and view the lower gold price as an opportunity to buy," said Commerzbank in a note. Currency fluctuations are signaling worsening confidence in the global economic recovery and in the euro.

The euro has lost 15 per cent against the dollar since the beginning of the year and now Goldman Sachs Group Inc. has just lowered its forecast for the euro, saying it will drop to a low of $1.15 by year end due to a deepening of the European debt crisis.

The Bank for International Settlements said that the sovereign debt crisis has created an environment in which investors dwell on negative developments even when data shows economic recovery.

“Against this background of heightened uncertainty, market participants focused on the deteriorating financial market conditions while often ignoring positive macroeconomic news,” BIS said on Sunday.

“The April jobs report, for example, saw U.S. non-farm payrolls increase by 100,000 more jobs than expected to 290,000, but the S&P 500 Index fell by 1.5 per cent on the day.” Buy physical Gold assets instead of paper assets, Gold bullion assets store value buy Gold coins and bars today.