7/3T10:31 ECB report

US$ up Gold down...

Dollar strengthens against the Euro as Trichet comments suggest a more balanced view
Trichet cites uncertainty surrounding the economy going forward, saying downside risks remain. Notes money growth data confirms inflation risk (M3 growth is over 10%)... underlying rate of money and credit growth remains strong... sees a pronounced decline of M1 growth; says higher interest rates has cooled household borrowing... Says Monetary Policy today will contribute to price stability; says starting today they have no bias and no commitment; says will do whatever they need to keep price stability and anchoring inflation expectations; message for second round effects remains the same. (Dollar is currently at $1.576/Euro)

So, Trichet is trickey and raises rates but throws the US$ a bone by softening his rhetoric. I do not deem this at all dangerous to the current trends in place; lower US$ higher gold price. This statement is however enough for the market to be manipulated on a half day going into a three day weekend.