GOLD PRICES CLIMB ON BARGAIN HUNTING

by Goldline.com | July 09, 2010

Despite a recent increase in investor risk appetite, gold prices are rising on the New York Spot Market Friday as of 11:38 a.m. EST on bargain buying and increasing demand from India, the world’s largest gold jewelry market. "Dips in gold continue to find pockets of investment bargain hunting," James Moore, an analyst at TheBullionDesk.com, wrote in his daily note this morning. (The Street, 7/9/10)

Stocks are struggling on the New York Stock Exchange Friday, following a three-session rally this week. Little economic news is scheduled for today, which may further suppress any gains in stocks. "The market has a wait-and-see attitude," said Bob Tull, chief operating officer of Old Mutual Global Index Trackers. "People are making their own opinions of whether it's going to be a different world from one day to the next, and are sitting on the sidelines until we continue to see smaller positive gains and a nice gradual progression with less volatility." (CNN Money, 7/9/10)

Fortune magazine is reporting this morning that central banks are abandoning the U.S. dollar, according to a new report from Morgan Stanley analyst Emma Lawson. The report fuels speculation that the dollar is ‘firmly on its way to losing its status as the reserve currency of the world.’ Fortune also notes that just last week, America's debt leapt $166 billion in a single day. That one-day run-up is greater than the entire U.S. annual deficit in 2007. In addition, the United Nations released a report last week that the dollar should no longer be the world's reserve currency because it is not stable enough. (Fortune, 7/9/10)

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