Gold News - 7/8/08

• Gold started the new trading week off strong on Monday, touching a high of around $933 before falling to around $915. However, strong support hit the market at that low, and strong investment demand pushed gold back to $928, largely in part to the continued problems in the financial markets. Investors are continuing to look to alternative assets as safehavens for their wealth as the equities markets continue their decline with little positive news on the horizon to prop them up.

• Monday was a volatile day for the Dow as well, first increasing its value by 100 points early in the day before making a 200-point plunge in a very short amount of time. After hitting its daily low, the Dow clawed its way back to positive territory before falling quickly again, finishing down almost 60 points.

• Gold is up more than 40 percent over the past year and continues to be in a Bull Market, along with many other commodities, while the Dow, which is down around 20 percent since hitting a high back in October of 2007, is in a Bear Market. The uncertainty in the financial markets stemming from the credit crisis will likely continue for some time and as second quarter earnings season begins today, the market will likely be very volatile over the next few weeks.

• Oil is down below $140 a barrel this morning, however, consumers should keep this in perspective - it is still up more than 45 percent for the year - it is still well supported by basic supply and demand fundamentals that likely will not change in any significant way any time soon.

• And, while its balance sheet looks terrible due to taking illiquid assets from banks in return for t-bills, look for the Fed to continue to make direct loans to securities dealers in order to maintain some sort of financial stability in the market. In turn, this will likely delay any future interest rate increases, at least until some time in 2009, which is bearish for the dollar and bullish for gold long-term.

Donald W. Doyle, Jr.,

Chairman and CEO

David Beahm,

Vice Pres. and Director of Marketing and Economic Research

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