Gold Coin Prices Remain Steady

Gold Coin Prices Remain Steady

June 4, 2010 – The value of the gold coin is holding steady on continuing fears of further trouble in Europe and bad employment data here in the United States. New concerns over the spread of the European sovereign debt crisis have been fueled by news from Hungary and evidence the crisis is affecting Eastern Europe.

A spokesman for Hungary’s Prime Minister Viktor Orban stated, “It’s clear that the economy is in a very grave situation.” He went on to say, “I don’t think it’s an exaggeration at all” to speak of a Hungarian default on their debt. The forint, Hungary’s currency, slumped 2.8% on the news only to rally somewhat and close down 1.8% yesterday.

The Perth Mint in Western Australia reported the Greek sovereign debt crisis has caused a surge in bullion purchasing. Ron Currie, sales and marketing director for the Perth Mint, producer of 6% of the world’s bullion, stated European buyers were responsible for 69% of the gold coin purchases last month alone. This figure is up from 51% the previous year.

“The market knows the Europe debt crisis isn’t going away anytime soon, so gold’s safe-haven status is going to keep prices supported,” said Wu Zheng from China based Soochow Futures Co. Many analysts believe if the situation in Europe deteriorates gold coin and bullion prices will rally significantly.

Mid-day today, spot gold prices are hovering near the psychologically significant 1,200 level after a week of mild profit-taking. Technically, gold remains in a solid upward trend with previous support encountered in the 1160-80 range. Moderate resistance was experienced last week at 1230.

Kevin Johnson

Senior Staff Writer –

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