Weekly Fundamentals - Stress Test Result Weighed on Gold Price

24 July 2010 24 July 2010

BonTrade

Last week's headlines were Fed Chairman Bernanke's semi-annual testimony to the Congress and European bank stress tests. The 2-day testimony caught special attention as investors wanted to see how the Fed viewed recent weakness in US economic data. While the market had anticipated Bernanke to describe the economic outlook as a 'short-term slowdown', his comment that the economic development is 'unusually uncertain' disappointed the market. This put slightly downward pressure to risk assets in the middle of the week.