Investors were somewhat calmed overnight as it became clear that Ireland would take a bailout from the European Union and International Monetary Fund.
The country had been resisting any financial aid to avoid the stringent rules that go along with it. The country will have to meet certain deficit-reduction targets in order to receive lump sums and there is speculation that the country might be forced to raise its corporate tax, which is now at 12.5%.
Although details of the package are still being figured out, uncertainty has ebbed for now, which is helping support the euro, weaken the dollar and provide a floor for gold prices.
"Once this consolidation completes, we are looking for a particularly strong bull run in gold stocks," says Vedant Mimani, managing director at Atyant Capital. Mimani said he is "'only' at 75% long exposure. We will deploy the remaining 25% ... as we work through this period
>To contact the writer of this article, click here: Alix Steel.
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