Currencies trade in a tight range… G-20 to shun an exit from stimulus? Gold and Silver and Oil… A new trend? Loonies follow the commodities higher… And Now… Today’s Pfennig!
The gold price straddled the $740 mark throughout most of trading in the Far East on Monday, although a smallish rally began at 3:00 a.m. New York Time. That tiny rally ended shortly after London opened and began a gentle decline right into the Comex…where both gold and silver had the rug pulled out from underneath them. About 9:00 a.m. Eastern, the selling pressure disappeared and another rally began which got capped just under $750. As of this writing, $12 has been carved from the peak price of the day…and 22 cents for silver. Volume was extremely light…even lower than Friday…so it wasn’t hard to push the price around. Having said that, the US$ was down 95 basis points, but…
What will Paulson say? Dollar remains well bid… How long for Safe Haven buyers? G-20 Schmee 20! And Now… Today’s Pfennig!