-->Gold held yesterdays gains overnight in Asia and fixed at $642.90 this morning in London. Both the gold and silver bullion markets are now more settled, after some frantic trading activity earlier in the week. Overall, we expect gold to trend higher as the US dollar is expected to remain soft after Chairman Bernanke's less-hawkish-than-expected testimony and Kansas Fed president Hoenig's dovish comments. Given the price volatility over the past 8 trading days, we would expect to see jewelry manufactures begin to buy gold on dips, coming out of this seasonally slow demand period, rather than wait for a potential breakdown below $600 per ounce. Given our expectations of improved Q3 seasonal demand, elevated geopolitical risk, evidence of new Central bank purchases and the potential for sustained US dollar weakness we believe gold will test the recent $735 per ounce highs by year-end.


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