Investors Buying Gold due to fears over Greek default

Rising Gold Prices imply that investors do not share the European Council's (EC) confidence over the outcome of the situation involving Greek debts.

That is according to a note by HSBC, a UK-based bank with $2.4 trillion of total assets under management, which has cast doubts on recent claims made by EC president Herman Van Rompuy that Greece will not default.

Jean-Claude Trichet, president of the European Central Bank, has since issued similar comments to Van Rompuy.

However, Reuters reports that HSBC said in the note: "The rally in gold prices implies the financial markets do not entirely share their conviction, for as long as the markets are wary of euro sovereign debt, gold is likely to be well-bid."

Meanwhile, Mickey Fulp, the Mercenary Geologist, has told the Gold Report that he thinks dollar weakness has had a big impact in Gold Prices.

In an interview with the Gold Report, the expert asserts that the precarious situation surrounding the US currency is pushing Gold upwards.

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