Archived IMT (2009.06.08)

Gold drops after its first weekly decline in 5 weeks. Although risk-based dollar gains are seen negative for gold, any prolonged losses in equities and banking stocks could stabilize the metals. Markets watch the 940 level, which is the trend line support holding since end of April. A breach below 940 sees the next source of support at $925. While stocks are their near lows of the day, dollar is off its highs after the NY Fed was purchasing 5 and 7 year treasury notes. So far the Fed has bought $153 billion out of the $300 billion it said it would buy in March.