The gold price started the week on a tear as bargain hunters put the pedal to the metal on bullish comments from the US Fed chair. Good economic news, however, beggared the price, and by the end of the week gold was struggling again.
Heightened tension in the Middle East, along with positive economic news from beleaguered China and Europe, pushed gold higher this week.
Recent research by New Frontier Advisors, commissioned by the World Gold Council, offers statistical analysis regarding the diversification value of gold exposure to an investment portfolio of a Euro denominated investor.
Debate over the potential of extensive gold reserves held by central banks to resolve the euro zone's economic problems have been pervasive in recent months just as fear of exposure to the sovereign debt crisis has grown. In fact, reports of the German central bank liquidating some of its gold reserves for the first time in almost a year have surfaced, selling 150,000 troy ounces in October.
Prices for gold have lately been demonstrating greater sensitivity to news flow out of Europe than positive data out of the United States. With the market seeking out bullish news, confirmation of the European debt crisis will continue to be the strong triggers that will take gold prices up.
Bloomberg reported that European debt worries may cause gold to rise for a fourth straight day.
Bloomberg reported that new technology is allowing miners to explore previously closed gold mines once again.
Bloomberg reported that the European debt crisis may cause gold to continue to rise.
Mineweb reported that the European Parliament's Economic and Monetary Affairs Committee has confirmed that gold can be used as collateral.
Bloomberg reported that European debt worries boosted gold prices for a fourth straight day.
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