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European debt concerns increase gold's price

Release Date: 
Wednesday, December 1, 2010

Prices for gold increased for a third-straight day following concerns about the debt crisis permeating Europe as investors seek a safe haven, Bloomberg reports.

Speculation about policymakers at the European Central Bank meeting on Thursday to discuss preventing the widening of the debt crisis to expand to other countries also led to a fall in the U.S. dollar. In London, gold bullion went from $1,383.50 per troy ounce Tuesday afternoon to $1391.50 on Wednesday morning.

There are "too many complications in the euro zone and the U.S.," Bernard Sin, head of currency and metal trading at bullion refiner MKS Finance SA in Geneva, told Bloomberg. "People are long gold and probably will keep their long positions into the New Year."

Spain and Portugal have emerged as prime bailout candidates for debt woes, following the path laid out by Ireland, who was bailed out last month. Earlier this year, Greek banks were bailed out.

"Increasing uncertainty regarding the role of the U.S. dollar within the international monetary system, concerns related to the stability of peripheral euro zone countries and growing inflationary pressures in Asian emerging markets, particularly China," are boosting the value of gold, according to yesterday's report by Anne-Laure Tremblay, a London-based analyst at BNP Paribas SA.

This news article is independently provided by Brafton and does not represent the views or opinions of Goldline International, Inc. Although the information in this news alert has been obtained from sources believed to be reliable, Goldline does not guarĀ­antee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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†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.

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