Firmness in Gold Despite USD's Strength Signals Lure for Safe-Haven

15 March 2010 15 March 2010

BonTrade

Gold stabilizes after Friday's decline and recovers to 1107 in European morning. Sovereign crisis in Europe and potential moderation in emerging market growth increase precious metals' attractiveness. In fact, we believe gold is a better safe-haven asset than the dollar as the US is also facing challenge in dealing with budget deficits.