Greetings!, There is a Spanish proverb: "Mucho ruido y pocas nueces," which translates roughly as "Much ado about nothing." Although the news of Spain's banking bailout is welcome broadly speaking, it has meant next to nothing for the gold and silver markets. In Asia and Europe, at first markets were buoyant, but then in New York during the morning, the precious metals took a beating (leaving out platinum and palladium). Then bargain hunters took over and by mid to late afternoon, gold and silver were both up 0.25% - until near the end of session, which found gold up a paltry 1/10th of a percent and silver up 2/10ths of a percent. There was a certain amount of dollar tracking and that took some of the wind out of the sails of the mini-rally. The essential problem is that Europe is engaged in a high-stakes game of financial whack-a-mole. All right, fine, Spain is more or less patched up. But next - POP - Greece has elections on Sunday, and the French - POP - are already voting their disposition, continuing a leftward drift. Additionally, Italy, now in recession - POP - is coming under more intense scrutiny. Gold is all about two things: the Euro situation and what the U.S. Fed might or might not do. It is no wonder then that a safe haven such as gold swings all around from overnight to morning to afternoon, from Asia to Europe to New York, with bargain hunting and short covering pushing it up and hen selling taking gold prices back down. So gold is left to track the dollar inversely. The dollar rises, gold sinks. The dollar falls and gold goes up. Absent any real news, that's the fundamental outlook, although the technical analysis (below) and in the video at right may tells us otherwise. As always, wishing you good trading Executive Producer | 
