Gold's recent correction continued yesterday but it has risen today as the dollar has fallen. Gold is up in most currencies this morning except in euro terms as the euro has seen a relief rally on the outcome of the EU agreement to create a post-1913 crisis tool. Fundamental disagreements remain though and the agreement may not be enough to stop the debt crisis from deepening, with many analysts pinpointing the first quarter of 2011 as a high risk period. Gold is currently trading at $1,371.78/oz, €1,030.20/oz and £878.47/oz. Portugal and Spain's fiscal situations remain precarious and yields on Spanish debt are rising again over concerns of Spain's credit quality. Moody's slashed Ireland's credit rating by five notches to Baa1 from Aa2 this morning. They warned that further downgrades could follow if Ireland was unable to stabilize its debt situation. Ireland's 10 year bond yield has risen from 8% to 8.35% in recent days on these concerns.

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