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(1888PressRelease) Trichet's remarks caused a slight correction for precious metals.
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Gold Edged Lower Following Monday\'s Rise but Long-Term Outlook Remains Bullish says Pan American Metals of Miami
(1888PressRelease) Trichet\'s remarks caused a slight correction for precious metals.
MIAMI, FL, Gold and other precious metals edged slightly lower today, following a strong rise on Monday, October 10. ECB President Jean-Claude Trichet\'s remarks about the fear of \'contagion\' made many investors nervous enough to look at liquidating, resulting in a stronger dollar and a slight correction for gold. However, there are signs of risk appetite returning, which should bode well for the white metals, which depend heavily on industrial demand, especially considering the possibility of tighter supply and demand ratios. Silver, in fact, which benefits from both safe-haven and industrial demand, is the only precious metal to be showing slight gains today.
Gold should also benefit in the longer term and the outlook for the coming weeks remains bullish, with investors being advised to buy in the dips. At present, gold is moving in tandem with the equity and commodity markets; if these continue to rise and the correlation with gold also continues, then gold prices will rise also. However, if the current correlation changes then gold should still benefit on safe-haven demand.
"The outlook for precious metals bullion remains positive in the medium to long term," says Bill Hionas of Pan American Metals of Miami. "Gold is holding firm above $1650 and analysts are still targeting $1700 shortly."
Barclays Capital actually suggested that strong seasonal demand from Asia could push gold prices up to around the $1875 mark in the near future. In India, jewelers are reporting increased buying ahead of Diwali, particularly in light of recent lower prices for both gold and silver.
Pan American Metals of Miami, LLC is a group of traders, investors and account executives that combines many years of experience to help clients invest in bullion. PAMM provides an individual investment service and is based in Miami, Florida for convenient access to both North and South American investors.
Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com