Find Out Why Risk Appetite Pushes Gold Bullion Higher Directly At Gold-Bullion.org
February 16, 2010 – The risk appetite that is working against the euro and the US dollar is working to push gold bullion prices higher as the metal gains momentum on the world markets. Gold spot prices that had dipped to almost $1,050 per ounce in mid-January have been on a two-week run, reaching close to $1,120.00 per ounce in midday trading today. The aversion that investors are feeling to the euro has given them an appetite to turn to gold as the asset for protecting their wealth during the current sovereign debt crisis that is pressuring the European Union.
As American investors and traders return from the President’s Day holiday, gold has continued its recent strong activity and pushed above several significant amounts during the past two days, first moving past the $1,100 resistance point and then pressuring the $1,120 level. These moves are in line with some analysts’ expectations of a rally that takes gold bullion prices above the $1,160.00 mark in the near future and to prices as high as $1,350 if other experts are correct.
.The expectation is for the rally to continue. This is "the end of the correction," said Peter Grandich, chief commentator on Agoracom.com. "We need to get above $1,125 to officially, technically put it behind us. We need two trading days above today. I think we should hold most of these gains. The rest of the week I think we're going to see the shorts give one last chance to stop the rally, but the surprises in gold ... will be mostly to the upside."
The rest of the week will truly test the strength of the gold price rally. If gold can weather the profit taking that is likely to occur for the next couple of days, risk appetite is likely to push gold bullion prices even higher as the rally builds.
