GOLD CONSOLIDATES FOLLOWING HOUSING DATA

by Goldline.com | July 26, 2010

Gold prices are consolidating on the New York Spot Market on the release of a better-than-expected housing report, which has renewed optimism that the U.S. economy is strengthening. "There's a feeling that for now things are pretty stable," said Stephen Platt, a commodity analyst with Archer Financial Services in Chicago. Risk appetite is back in play as investors sell gold for stocks. (Marketwatch, 7/26/10)

The Dow is back in positive territory after the new home sales report sent stocks higher on the New York Stock Exchange. New home sales rose to a seasonally adjusted annual unit rate of 330,000 in June, bouncing from a revised 267,000 unit rate in May. Sales were expected to rise to 310,000. While the report was positive news for investors, the overall housing outlook is still somewhat sluggish, reflecting the end of the homebuyer tax credit and the slower pace of the economic recovery. (CNN Money, 7/26/10)

Longtime commodities guru Peter Krauth is sticking by his prediction from earlier this year that gold prices are long-term headed to $5,000 an ounce. “I feel even stronger about my forecast now,” He said in an interview with Money Morning, “There are a few catalysts I expect will bring about a major rise in the price of gold. I'm firmly in the inflation camp. Inflation may not be an obvious threat right now, but it's the only logical outcome, given the recent actions of spendthrift governments. Mr. Krauth also believes the short-term outlook for gold to be bullish, with prices hitting $1,500 and ounce by the end of this year or beginning of 2011. (Money Morning, 7/26/10)

† 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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