GOLD RISES ON MOVE FROM CHINA

Gold prices are rising on the New York Spot Market after China’s central bank announced it will allow its banks to import and export more gold as part of a program to push forward the development of the country's market in the precious metal. "This is largely positive news for gold," said UBS analyst Edel Tully. "It looks like an effort to further liberalize the gold market and integrate it into China's financial framework." Michael K. Smith, the president of T&K Futures & Options in Port St. Lucie, Florida echoed, “The dollar is going to stay weak. The news out of China is very bullish for the market. It’s a huge deal.” (Reuters, 8/3/10)

Stocks closed lower Tuesday on mixed earnings and disappointing economic reports. "It's the same battle between positive earnings and negative underlying fundamentals in the real economy," said Dan Cook, senior market analyst at IG Markets. "The big question is still where do we go after earnings season." (CNN Money, 8/3/10)

Speculation has begun to surface that the Fed may consider further easing monetary policy, possibly by buying assets, as early as Aug. 10 when the next meeting over policy is scheduled. Marc Faber of "The Gloom, Boom and Doom Report," told CNBC on Tuesday the Federal Reserve will create a "final crisis" by continuing to print money because it is underestimating the strength of the economy. Faber sees “significantly more” quantitative easing and warns, "Investors should have listened to me already six months ago when I wrote that the Fed will continue to monetize … they will print and print and print until the final crisis wipes out the whole system.” (CNBC, 8/3/10)