GOLD HIGHER AS DOLLAR SLUMPS

by Goldline.com | July 14, 2010

Gold is moving higher on the New York Spot Market as of 11:38 a.m. EST as the U.S. dollar slumps and the euro rallies to a fresh two-month high. Gold just recently began trading in tandem with the euro again. Many analysts believe gold will remain in tight trading range in the near-term as investors digest earnings results and economic data – key indicators of the strength of the global economic recovery. "I think we'll probably be in [the $1,200-$1,265] range for most of the summer," says Brian Hicks, co-manager of the U.S. Global Investors Global Resources Fund. "[Then] I think we will break out above that sometime in the fall when we hit that seasonally strong period for gold." (The Street, 7/14/10)

Stocks are mixed Wednesday as investors weigh upbeat corporate results with an unexpected drop in retail sales. "Earnings have been quite outstanding and the market has been in pretty good shape lately, but markets can't like everything about all the earnings reports," said Robert Brusca, chief economist at Fact and Opinion Economics. "At some point you're going to have to look for this to settle down." (CNN Money, 7/14/10)

A Chinese credit agency dealt a blow to the United States this weekend by downgrading the U.S. to a double-A rating, according to Fortune Magazine. Dagong Global Credit Rating Co. ranks the United States as riskier than a dozen other nations, including China, Canada, Australia and Saudi Arabia. The company says it is privately owned, though the state-run Xinhua news agency presented the findings as China's own sovereign credit rating report. The agency further stated that slow growth and budget problems could prompt further downgrades here and in other big Western economies. (Fortune, 7/14/10)

† This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. You should review Goldline's Account and Storage Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline's spread, which is the difference between the price we sell our products and the price we buy them back, generally ranges between 5% to 20% on our most common bullion products and 30% to 35% on all other products including our popular European francs, proof coins, silver dollars and half-dollars, and graded coins. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage. To receive free information package on gold and precious metals investing, call Goldline at 1-877-341-2646.
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