Gold and silver were flat yesterday as rage against the banking and financial industry spread to four continents over the weekend.
Light crude oil joined gold to move slightly higher, with gold up $3.56 to $1,684.61. Silver was mainly flat this morning, up $0.13 to $32.33.
The sideways trading came as the dollar lost ground to almost every major currency and Europe managed to talk their way through yet another “comprehensive” plan to deal with their debt crisis. It’s likely the G-20 will follow up this talk with even more serious statements later this week.
It’s good to remember that sovereign debt is not the only factor to consider when looking at Euro-zone economic stability. No amount of chatter is going to make a dent in the systemic problems underlying the Euro-zone economic crisis. Until there are better investment options, gold and silver are going to remain in safes and safe deposit boxes across Europe.
The slow-motion problem-solving in Europe, coupled with continued high demand from China and India, will provide ongoing support to gold and silver prices.
Adding to the market mood this morning were mainly peaceful protest around the globe aimed at the banking and financial sectors as the anti-Wall Street mood settles in across America and around the world. Ironically, Citigroup and Wells Fargo are both set to announce huge profits in yet another tone deaf day in the financial sector.
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