Markets Slide Again, Gold Mounts Strong Reversal

Wednesday, May 05, 2010

Stocks recovered half of their losses after opening over 100 points lower. The Dow closed down 60 points (-0.55%) as the euro was pummeled across the pond. The euro slid 1.3% to $1.28 as riots across Greece spooked the markets. Three people died as the protests turned violent with tens of thousands taking to the streets to show their objections to the austerity measures in the Greek bailout package that includes wage cuts and 3-year salary freezes for public employees. Moody's placed Portugal under ratings review for a possible downgrade adding steam to the contagion engine of fear.

Gold mounted a stunning comeback after early selling hammered the metal through the previous breakout level. Gold hit $1,155 before reversing course and rallying over $21 back up to $1,176 by the New York equity close. I continue to look for upside in NYSE:GLD.
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