Even though Gold prices ended flatly on Friday, it still continued to post gains for the last four straight weeks. The reason for increase in gold prices is that investors are going for safety due to European debt crisis and shrinking liquidity.

Analysts feel that Gold is a much safer instrument compared to equities as increasing volatility across the world makes it even more risky to invest in shares. US markets also fell down more than 2%, oil prices also fell down 4% and metal prices also went down.

The sale of European and US coins, bars and exchange-traded gold funds also increased during the current week. The index in COMEX futures rose to an all-time high on Thursday.

But many analysts feel that if the market continues to stay under pressure and goes down in the coming days, gold prices will also be under a lot of pressure.

U. S. mint posted its highest monthly sales year to date for the popular American Eagles coins. The demand for the month of May at 72,500 ounces was considerably higher than 60,500 ounces which was for the complete month of April.

Analysts stress that gold coins and bars are preferred by investors normally during times of economic and geopolitical crisis.

Global gold reserves have increased 6% during the last four weeks.