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Quick Take: Portugal Boosts Case for Gold

NEW YORK ( TheStreet) -- With gold near a three-year low, is it a buy, or simply a bull trap? Here to help TheStreet's Lindsey Bell is Will Rhind, head of U.S. Operations at ETF Securities.

After a couple of strong sessions following its break to less than $1,200, gold cooled off a bit Tuesday ahead of Wednesday morning's ADP jobs report, Thursday's European Central Bbank interest rate announcement, and Friday's U.S. nonfarm payrolls report.

However, the question from prospective gold owners remains: Is this a safe level to buy gold?

Although gold prices have seemed to consolidate over the past couple of months, the yellow metal "makes sense" at these levels, especially if you worry about Europe and global inflation risks, according to Rhind.

Portugal is not helping matters in the short term. The country's debt rates have started to tick higher, as the spreads have widened and debt is becoming more expensive.

There are long-term reasons to own gold as well, according to Rhind. With loose monetary policies around the globe, slow growth and massive debts in the Western world, gold is a way to preserve wealth, he says.

All of the global risks are still pushing investors towards gold, and "I think that trend hasn't change, and most likely won't change over the longer-term," Rhind concluded.

-- Written by Bret Kenwell in Petoskey, Mich. .

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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