Gold Bullion 'remains in rude health'

The value of Gold Bullion is creeping towards $1,200 per ounce on the back of strong worries over a possible default by Greece on its sovereign debt.

That is according to Martin Murenbeeld, of DundeeWealth Economics, who has criticised recent bearish claims on Gold Prices that were made by GFMS.

Speaking at the recent Zurich Gold Forum held by the Denver Gold Group, he told industry experts that even if investment demand did wither and Gold Prices dropped, demand for jewelry would "take up the slack" at $800 to $900.

However, he added: "Our view is that investment demand will remain an important source of demand for the foreseeable future."

Mr Murenbeeld went on to suggest that the risk posed to Gold Investments by bearish market influences will be particularly low for the remainder of this year, as most countries will not begin reducing budget deficits until 2011.

Reuters is also reporting that Gold Prices could be "poised for highs" as investors look for a safe haven amid falling prices for other commodities on the back of Greece's growing debt crisis.

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