Gold Likely Higher as Debt Ceiling Deadline Looms

As noted last week by Currency Analyst David Song, “the short-term correction in gold is likely to be short-lived, and the bullion should resume its upward trend as prices end the week above $1600 per ounce. In turn, buying dips may turn out to be a favorable strategy amongst market participants, and we are likely to see fresh record-high prices for the precious metal as it benefits from safe-haven flows.” Such appeared to hold true, with the precious metal gaining 1.61 percent over the past week against the U.S. Dollar. Similarly, bullion was also bid higher against the British Pound and the Euro, while losing ground against the New Zealand Dollar and the Swiss Franc. As such, Gold is only lower in Franc-terms in 2011.