GOLD LOWER AHEAD OF STRESS TESTS

by Goldline.com | July 23, 2010

Gold prices are down slightly on the New York Spot Market as traders await the results of the bank stress tests from the European Union. Gold prices were up in early trading, but a stronger dollar and increased risk appetite on positive U.S. earnings reversed those gains. (The Street, 7/23/10)

Stocks are struggling on the New York Stock Exchange as investors anticipate the results of the EU’s stress tests Friday. In addition, Moody’s put Hungary on review for a possible downgrade of its debt, reminding investors that the European debt crisis is far from over. (CNN Money, 7/23/10)

Dennis Gartman, author of the very successful Gartman Letter, says gold is moving closer to global reserve status in an exclusive interview with Mineweb. According to Gartman, “gold is quietly becoming a reservable asset and honestly in 10 or 15 years it will be the US dollar, gold and Renminbi, which will be the major reservable assets. Take that as you wish." Gartman goes on further to assert that the U.S. currency injected into the market to counter the financial crisis will likely have to remain in place “perhaps permanently” (Mineweb, 7/23/10)

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