Monday, February 15, 2010

Gold momentum enjoys a strong week

Commodities, including gold, had a good week in part because of growing economic optimism in various countries around the world.

A report by Bloomberg cited positive economic signals in Australia and China as fueling gains in industrial metals including copper, while concerns about sovereign debt problems in Europe were further fueling the momentum for investing in gold coins and similar options.

"Gold is moving along with all of the commodities. There's some economic optimism that's bringing in buying. People want to embrace gold with the overall risk tolerance that is coming back into the market today," Adam Klopfenstein of Lind-Waldock told the financial news provider.

Gold prices had previously staged a small retreat, which gave more investors the potential to add to their positions or to get into the market at a lower price.

Looking ahead, demand for gold and silver is likely to remain strong in the coming months due to a mix of concern for the economy in some quarters, as well as the increasing demand for precious metals in developing nations, which have been especially seeing renewed financial activity so far.