American Bullion -- Buy Gold Bullion For Asset Protection

Tuesday, June 15, 2010 at 06:13am

June 15, 2010, Los Angeles – Gold bullion prices closed slightly lower on Monday as the euro gained against the dollar. While gold prices are showing some temporary pressure, in the longer term global economic concerns are still supporting prices.

With new data showing industrial output in the euro zone rose more quickly in April than expected, the euro climbed back above $1.22 for the first time in a week, recording its biggest weekly gain since September.

After Moody's Investors service downgraded Greece's credit rating 4 levels, the euro lost ground against the dollar but still remained up more than 1 per cent for the day.

“What you have is a situation where the headline comes up saying four-notch downgrade and the initial instinct is to sell first and ask questions later,” Gary Jenkins, head of credit research at Evolution Securities Ltd. in London, said in an interview.

“Greece being junk shouldn’t be a shock. But there’s a lack of confidence in the market and you only need a little bit of bad news to send it lower.”

Global investors are beginning to look beyond Greece and are showing concern over the more sizeable European countries with enormous debt like Spain, say analysts.

Spanish Treasury Secretary Carlos Ocana admitted officially for the first time that Spain was working to restore confidence after some Spanish banks faced a liquidity freeze in the interbank market recently. "It's definitely a problem," Ocana said at a conference of business leaders when asked about the credit squeeze.

He denied that Madrid was negotiating a financial aid package."Spain does not need additional financing from any international institution. The rumor is false and I deny it."

Investors are continuing to purchase physical Gold as a hedge against currency devaluation. The fundamentals for Gold bullion are still very bullish. Buy Gold bullion for asset protection today.