GOLD ADVANCES ON SIGNS OF SLOWING ECONOMY

by Goldline.com | August 12, 2010

Gold pushed well above $1,200 an ounce on the New York Spot Market as of 9:00 a.m. PST after a report showed jobless claims rose in the latest week, reigniting investor concerns about the health of the global economy. Looking ahead, Richcomm Global analyst Pradeep Unni sees gold rounding out the year higher. "Gold has climbed 9.3% this year and is set for its tenth straight annual advance," said Unni. That is "the longest winning streak since at least 1920, as investors shield their wealth against economic turmoil and the prospect of currency debasement." (Marketwatch, 8/12/10)

Stocks continued to fall Thursday. "The weakness we've been seeing in the markets will continue, given the focus on the bigger economic picture," said David Jones, chief market strategist at IG Markets in London. Investors are looking ahead to key retail sales and inflation data due Friday that may provide a boost of confidence on Wall Street, based on economists' expectations. (CNN Money, 8/12/10)

Gold prices may rally to $1,300 in six months, driven by low interest rates and the prospect of renewed quantitative easing in the U.S., Goldman Sachs Group Inc. analysts David Greely and Damien Courvalin wrote in their report yesterday. “Concerns over a slowdown in the global economic recovery are still haunting the broader market with macro releases still fairly downbeat,” Andrey Kryuchenkov, an analyst at VTB Capital in London, wrote today. More “carnage on the broader market” would give “a small boost to bullion from here,” he said. (Bloomberg, 8/12/10)

† 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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