American Bullion -- Debt Crisis And Bull Market In Gold Continue

Monday, June 28, 2010 at 05:51am

June 28, 2010, Los Angeles –The price of Gold closed out the week just below the all time record set last Monday against the Dollar. Gold bullion prices have gained 15 per cent in 2010, and have posted nine annual gains, as investors continue to seek an alternative to currencies.

Silver climbed to over $19 before it lost back some of its gains it was still able to show a gain of 2.19 per cent for the week. The three major US stock market indices; the Dow, Nasdaq, and S&P dropped 3 per cent last week as US economic growth for the first quarter was revised down from 3.0 per cent to 2.7 per cent and inflation was revised up from 1 per cent to 1.1 per cent.

The yen fell for the first time in a week against the euro and U.S. Two Year Treasury yields were near a 2010 low after the G-20 vow to cut deficits. The Group of 20 leaders, meeting over the weekend in Toronto, endorsed targets as a means to reduce deficits once their economic recoveries are firmly in place.

German Chancellor Angela Merkel seemed impressed with the specifics of the endorsements when she said, “Honestly, this is more than I expected, because it is quite specific,” she then said, referring to the fiscal targets. “It’s a success that industrialized countries as a group accepted this.”

President Barack Obama, speaking at the G-20 summit, said he expects to see a stronger Chinese yuan now that China has relaxed its currency policy. He also said that North Korea must be held accountable for its “belligerent” behavior in the sinking of the South Korean warship that killed 46 South Korean seamen in March.

Taiwan and China are expected to sign their first trade treaty on Tuesday. The treaty will strengthen commercial ties between China, who has the fastest growing major economy, and Taiwan, its island neighbor.

With the stroke of a pen China will become Taiwan's biggest trading partner. China has set aside its long standing claim that Taiwan is a renegade province in order to negotiate this historic Economic Cooperation Framework Agreement.

Investors are awaiting Consumer Confidence figures due out this week on Tuesday, Initial Jobless Claims on Thursday, and Non Farm Payrolls data on Friday. Gold begins the week approaching a record and investment demand should continue to rise on concerns that the sovereign debt crisis is spreading and affecting other European nations. Buy Physical Gold today and protect your wealth from currency weakness.