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Thursday, April 15, 2010

Gold Going Up on Greek Concerns

Gold dipped earlier in the session but has rebounded to level off around $1,160 an ounce.

Even though Greece and other members of the EU made it look like the loans promised the country were only as a last resort, and reiterated they may not be needed, already Greece is saying there's a good possibility they'll have to apply for the loans, making investors jittery over the implications of the move, and what that may mean for other struggling countries in the EU, who without a doubt are poised to get their share of the money once Greece has received theirs.

But not only is the need for a rescue the main thing bothering investors, but whether or not it'll even be enough to keep the country going, as there has been little done to deal with the core problem of the issue, which is Greece and its mindset itself, which has spent far beyond its means to keep its socialist agenda going.

This is why gold is holding, and may be ready to run up again, depending on how believable a bailout of the country will be as to how long it will last and if it'll take hold.

Gold is increasingly being thought of as an alternative currency, and it will continue to strengthen against paper currencies, including the euro, and is being considered a place of safety equal to the U.S. dollar by many, as evidenced by its decoupling from the U.S. dollar in its usual inverse relationship.

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