News Header

 

Analysts Note Sources of Optimism for Gold Prices

Release Date: 
Thursday, March 10, 2011

Analysts from MKS Finance and Phillip Futures expressed optimism for gold prices today as Middle East unrest continued and the long term prospects for ailing Eurozone economies came under question. Prices were $1420.80 an ounce at 6:15 AM Pacific Time on the New York Spot Market. Silver prices were steady, near 31-year highs.

The euro declined against the U.S. dollar on expectations of a positive U.S. jobs report, indicating an advancing recovery. Moody’s Investor Services also downgraded the Spanish government’s debt on Thursday with a negative outlook, pressuring the euro. Despite the slight pullback in gold prices from recent highs, unrest in the Middle East and North Africa, inflation hedging in China and the resurfacing of sovereign debt woes in Europe are expected to help support the price of gold.

“The profit-taking is related to a stronger dollar,” said Bernard Sin, the head of currency and metal trading at MKS Finance SA, a bullion refiner in Geneva. Still, “the situation in the Middle East will have a lot of influence” on demand for the metal as a protection of wealth, he said.

"[One]…factor that could see gold and silver higher would be the return of the euro zone sovereign debt crisis,” said Ong Yi Ling, an investment analyst at Phillip Futures in Singapore. “Investors will be looking forward to euro zone policy makers' meeting this Friday. If there's no resolution, perhaps we could see a new high."

(Sources: “Gold Declines as Stronger Dollar, Advance to Record Prompt Investor Sales

Bloomberg, March 8, 2011; “PRECIOUS-Gold rises on rebounding oil; silver ETF at record,” Reuters, March 10, 2011)

News Footer

 

†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage.

To receive free information package on gold and precious metals investing, call Goldline at 1-800-963-9798.