As the euro strengthened, investors dove back into the precious metal market, helping gold stabilise with the next rally expected to push it over $1,900 per ounce again.
“Gold and other precious metals are usually positively affected when the euro is performing well,” said Andrew Anderson, UK Fund Manager, Schaeffer Collins, UK, a commodity brokerage with offices in London, New York, Hong Kong and Sydney.
Gold achieved $1,921.40 on the New York Mercantile Exchange on September 6th. The price had dropped to $1,615.10 on January 1st during the uncertainties surrounding the Euro zone debt but since the agreed financial restructuring it has recently found a level of firm support at $1,640.00.
The Euro was recently trading against the Dollar at $1.3190, down from $1.3846 on November 25th in New York. The actions of the IMF in granting the financial aid agreement with Greece is now enough for investors to gravitate toward gold again.
Schaeffer Collins recommends investing in precious metals while the euro is again performing well as it makes them cheaper to buy for the investor paying in currencies outside of the U.S Dollar and furthermore, because metals are considered safe-haven protective assets.
“We’ve seen gold hover around the $1,640 mark lately, but we predict that in future weeks, the price will only continue to rise past $1,800. This is a great time to consider becoming an active participant in this precious metal market with Schaeffer Collins,” said Anderson.
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