Tuesday, January 26, 2010

Gold dealers anticipate ongoing strength in market

Gold prices have settled somewhat in recent weeks, potentially providing investors with new opportunities to set themselves up to take advantage of longer-term price gains.

A report from Bloomberg News notes that gold prices had remained relatively unchanged in London during Friday's trading, while platinum and palladium prices had fallen somewhat.

The financial news provider quoted Afshin Nabavi of MKS Finance SA in Geneva as saying that "the physical market thinks these prices are fantastic to buy at," while adding that "the dollar is also a little bit lower."

One reason why the dollar has fallen somewhat this week is concern in the financial sector over new proposals by the Obama administration that would place new regulations on banks in response to the problems that plagued Wall Street earlier in the recession.

The strength of the dollar is often a factor to consider when gauging the potential for gold investments. However, gold and other precious metals have also been showing more signs of strength in recent months regardless of what the dollar does.

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