There are still several factors supporting Gold bullion prices

Los Angeles, CA. – Morgan Gold – Gold bullion prices have dipped this Tuesday morning and are currently trading at $1,584.60 an ounce, well below Monday's record close of $1,604.60 an ounce that was reached after 11 consecutive days of gains. Gold is expected to enter a consolidation phase at the conclusion of Gold's record setting winning streak. Silver is also trading lower at $39.66 an ounce as some investors take profits after the recent rise in the price of Silver.

There are still several factors supporting Gold bullion prices, chief among them the escalating uncertainty over the European sovereign debt crisis, and growing concerns about the possibility of the U.S. Treasury defaulting on its debt obligations. The House of Representatives is expected to vote Tuesday on the so-called "cut, cap and balance" spending plan that would allow the government to borrow another $2.4 trillion, but only after adoption by Congress of a balanced budget amendment to the Constitution. The measure, whether passed by the House or not, is not expected to survive a Senate vote.

Former President Bill Clinton said on Tuesday that President Obama should avoid the political squabbling by using a Constitutional item in the 14th Amendment that allows the president to raise the debt ceiling unilaterally. Under the Fourteenth Amendment, "the validity of the public debt of the United States ... shall not be questioned," this sentence, some believe, gives the President the power to act on his own. Clinton says that he would invoke that option to raise the ceiling "without hesitation, and force the courts to stop me," The National Memo reports.

In the eurozone, the International Monetary Fund (IMF) recently urged eurozone leaders to improve the region’s rescue mechanism as part of an ongoing effort to end the deepening sovereign debt problems. The IMF went on to warn that if the crisis intensifies, it could have “major global consequences.” Meanwhile, Ewald Nowotny, a member of the European Central Bank’s (ECB) governing council, said that there are “some proposals that deal with a very short-lived default situation that would not really have major negative consequences.”

His statement sharply contrasted with statements by Jean-Claude Trichet, president of the ECB, who continues to steadfastly assert that any form of default would be unacceptable. Don't leave your assets unprotected during these times of economic and geopolitical uncertainty, invest in physical Gold and Silver bullion and protect your wealth in 2011.

Widely recognized Gold and Silver bullion coins and bars can be bought and sold quite readily at Morgan Gold and they can be easily stored in a safe-deposit box if needed. Did you know you can add Gold and Silver bullion to your IRA? It's true, and it's a safe and effective way to start investing, just call 1.800.585.1773 and speak to a Gold and Silver investment specialist at Morgan Gold today. Ask about our Sterling Trust Precious Metals IRA.