Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold edged slightly higher today as prices stabilized after yesterday's Fed-inspired sell-off. A weaker dollar lent some support, as did safe-haven buying after Moody's downgraded fifteen of the world's largest banks and Germany�s Ifo index of business confidence hit a two-year low in June. Still, gold lost 3.8% on the week after the Federal Reserve disappointed investors by extending Operation Twist, causing widespread liquidation of commodities and equities. Silver dropped 0.7% today while platinum lost 0.5% and palladium 0.2%.

At the close: August gold gained $1.50 to $1,566.90; July silver slid 18 cents to $26.66; July platinum dropped $7.40 to $1,431.20; and September palladium fell $1.35 to $607.20 an ounce.

Worries about the eurozone debt crisis and the global financial sector are underpinning gold at current prices. Some of the world�s biggest banks, including Bank of America, JPMorgan Chase and Goldman Sachs, were downgraded by Moody's because of their exposure to derivatives, high-risk financial instruments, and suspect loans. After this week's pullback, long-term investors and sovereign wealth managers are again turning to gold to diversity out of the dollar and euro. We expect prices to remain fairly stable as investors rebuild their positions at lower entry costs.