“Dawson & Fielding Inc”-Britain scrapes its way out of its 6 quarter-long recession . . . just!

Asia-based boutique brokerage, “Dawson & Fielding Inc.”, has reportedly told clients that they should take little comfort from the fact that the UK, Europe’s second biggest economy, has emerged from recession.

Britain was expected to emerge from its longest recession with a 0.4% expansion in the economy but, instead, it limped through with a mere 0.1% growth leading analysts at “Dawson & Fielding Inc.” to suggest that the Bank of England might find it hard to justify ending its controversial quantitative easing program that has been the subject of much debate in both political and economic quarters.

The figures immediately sent sterling lower against the US dollar and a basket of other currencies and prompted speculation that Prime Minister Gordon Brown would find little to crow about as he faces re-election by June 2010.

“Dawson & Fielding Inc.” sources suggested that the figures highlighted just how precarious the economic situation in the UK is. He added that it was no surprise given the reluctance of the average debt-laden consumer to spend with the prospect of severe public sector cutbacks, higher taxation and a continuing shortage of easy credit.

“Dawson & Fielding Inc.” are thought to believe that unless stronger economic data surfaces between now and February 4^th 2010 – the date for the next meeting of the Monetary Policy Committee – there is a strong likelihood that the Bank of England may decide to extend its QE program which could have severe implications for sterling.

“Dawson & Fielding Inc.”-The price of gold has pulled back after its sustained rally.

Asia-based boutique brokerage, “Dawson & Fielding Inc.”, has apparently told clients that the pullback in the price of gold represents healthy secular bull market activity and they should not be alarmed.

“Dawson & Fielding’s.” sources say the firm explained that the rally in the precious metal ran the risk of becoming a bubble and that a period of retrenchment and consolidation was necessary for the continuing viability of its safe-haven status.

The firm is of the opinion that further pressures and headwinds being faced by the major developed economies going into 2010 will serve to underline the relevance of gold as a hedge against governmental profligacy for as long as they continue to resort to inflationary measures to prop up their economies following the crippling recession.

“Dawson & Fielding Inc.” maintains its contention that the weakness of the US dollar played a less significant role in the run-up of gold and this they say is reflected in the limited fall in the price. One of the sources added that the advance in the dollar would have caused a much larger fall in the price of gold had it happened a year ago.

The firm maintains its view that the emergence of central banks as net buyers of gold has provided the metal with a safety net in terms of price as those of China, India and Russia continue their buying activity.

“Dawson & Fielding Inc.” are thought to have raised their price target for gold in 2010 to $1500 and re-issued their advice to clients to acquire the metal on price dips.

“Dawson & Fielding Inc.” on the resilience of mining stocks despite weakening metals’ prices.

Sources close to “Dawson & Fielding Inc.” say that the firm is encouraged by the performance of the junior mining stocks held in its portfolio in the face of the pullback in the price of gold and silver.

This, the firm believes, is indicative of the sentiment underpinning the future for precious metal prices.

“Dawson & Fielding Inc.” advised clients to buy into selected junior mining stocks when the broad-based sell off in commodities in the second half of 2008 saw many stocks plunge in sympathy. At the time, many perfectly viable miners with robust balance sheets found their stocks down by as much two-thirds.

Since then, however, the prices of both gold and silver have surged significantly and investors have begun to pay more attention to the prospect of serious inflation problems in the future as governments continue to print their way out of trouble.

“Dawson & Fielding Inc.” believes that mining stocks offer an excellent leveraged play on the underlying metals and some of their holdings have tripled in value since their lows in 2008.

The firm recently advised clients to sell half of their holdings in several miners thereby locking in profits. They also suggested that there may be trend of consolidation to come as miners look to reduce operating costs in the years going forward.