GOLD PRICES RISE ON HOUSING DATA

Gold prices are rallying on the New York Spot Market as of 10:53 a.m. EST as investors fled to the yellow metal after U.S. existing-home sales plummeted more than 27% to the lowest level in 10 years and durable goods orders slipped in July. Investors will look to the Federal Reserve's two-day meeting with world bankers in Wyoming, which begins Friday, for any signs of additional monetary easing. (The Street, 8/25/10)

The Dow plunged more than 100 points, driven by the latest report on the housing market. "The market is being driven by economic fundamentals, and things aren't looking too rosy." said Len Blum, managing director at Westwood Capital LLC. "There's not much upside for the market right now, and there won't be until we see some positive economic news." (CNN Money, 8/25/10)

According to a recent article in Rueters, economic worries will continue to drive strong demand for gold as investors acquire gold as a safe-haven asset. Any further signs of weakness in the U.S. economy could spell further gains for gold, analysts said. "We could definitely see further price rises if the economy proves not to be that robust," said Commerzbank analyst Daniel Briesemann. He said rising demand for gold as an investment product, as outlined in a World Gold Council report released on Wednesday, suggested further support for prices. "The seasonally stronger demand period is going to start now," he said. "In India, for example, we should see rising imports in gold until the end of the year due to the festival season, which started yesterday. That should help gold." (Reuters, 8/25/10)