December Gold soared to the upside on Thursday following a sharp break in U.S. equity markets. Traders increased their long hedges in gold on the stock market weakness. As mentioned several times the past few weeks, gold (hard asset) and stocks (paper) are competing for the same investment Dollar. Gold has had a tendency to rally lately following sell-offs in the stock market.
ECB’s Trichet Will Try to Steady Euro Investor Confidence
The European Central Bank is expected to hold its benchmark interest rate steady at 1.00% this morning. In addition, look for it to issue a statement saying that rates will remain low for quite sometime because of the fiscal problems in several Euro Zone nations and the risk of contagion.