GOLD HITS FOUR WEEK HIGH

by Goldline.com | August 13, 2010

Gold prices are trading higher on the New York Spot Market on concerns over the global economic recovery. Continuing weak job growth in the U.S. as well as comments from the European Central Bank that European Union growth will be subdued for the next two years were reigniting fears of a double dip recession and leading a surge into gold. (The Street, 8/13/10)

Stocks are under pressure on the New York Stock Exchange following three consecutive days of declines, as investors digested disappointing reports on retail sales and consumer sentiment. "It's low-volume season, also known as August," said Kim Caughey, senior equity analyst at Fort Pitt Capital Group. "Traders are on vacation, and we get some pretty crazy reactions -- or lack of reactions -- because of that." (CNN Money, 8/13/10)

Gold, trading near a six-week high in New York, may extend gains as concern that the slowing economic recovery will increase demand for the precious metal as a protection of wealth, according to Hwang Il Doo, a Seoul-based senior trader with KEB Futures Co. “The wobbly outlook for the economy is bolstering investor demand for gold. Good momentum is likely to continue into next week.” Tom Pawlicki, an analyst at MF Global Holdings Ltd. in Chicago, echoed those comments in a letter to investors saying, “Support will come from potential safe-haven inflows, disappointing economic data, and new signs of investment return to gold. Gold prices have benefited from its inability to be monetized, defaulted on, or devalued.” (Businessweek, 8/13/10)

† 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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