Friday, July 23, 2010

Gold Levels After Bank Stress Test Results Released

Gold futures and spot gold prices have held their own so far after the release of the stress test results of 91 banks, while the U.S. dollar rose against the euro immediately afterwards.

Results found that of the 91 banks being tested, seven totally failed the test, and were found they couldn't survive losses incurred from sovereign-bond holdings.

Gold dropped right after the results came in, but had rebounded slightly, and are holding level for now.

The U.S. dollar gained 0.8 percent against the euro.

Over the short term, how traders interpret the data of the banks will determine the volatility of gold prices.

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