American Bullion -- Invest In Gold Coins

Friday, June 18, 2010 at 06:36am

June 18, 2010, Los Angeles – The price of Gold rallied almost 1.5 per cent as world stock markets advanced and the dollar fell to a three week low against the euro. Gold bullion has proven to be investors favored safe haven asset.

"Over the past two days," says analyst Walter de Wet, "there appears to be increased buying interest in the physical market." With the Fed's continuation of its near zero interest rate policy, Gold bullion prices are expected to continue their advance.

"There are growing signs that support on the downside is again growing firmer," says a Thursday commodity note from Standard Bank's London office, "setting the scene for another break higher in the Gold Price."

European Union ministers meeting at a summit in Brussels joined France and Spain in calling for publishing the results of bank stress tests. EU leaders played down Spain's current debt problems and said the country was not on the agenda.

The premium for owning 10 year Spanish government debt over the German bunds hit a lifetime high in the euro on Thursday. An auction of Spanish 10 year bonds still attracted good demand.

Chinese officials are planning to use the upcoming G-20 meeting in Canada to discuss the global response to the European debt crisis. They plan to keep discussion of the yuan’s valuation off the agenda.

“The Chinese government is very closely watching the economic picture at home and the state of other economies before we decide on our economic policies, including on the renminbi exchange rate,” Zhang said.

The turmoil in Europe has “added new significance” to the Toronto summit, he said. Physical Gold's safe haven appeal tends to increase in times of economic and geopolitical crises. Buying physical Gold allows investors to prevent the erosion of their wealth. Invest in Gold coins today.