FRENCH DOWNGRADE AND QE3 LEAK DO NOT HELP GOLD AND SILVER
S&P today downgraded France and other European countries. Such a downgrade just before the long weekend should have caused about $70 of up move in gold. GLD and SLV not only did not respond, GLD and SLV are now down. Gold futures GCG2 are now down to $1633 and silver futures SIG2 are at $29.50.
Federal Reserve Bank has also leaked its plans on QE3. Based on historical patterns, this leak alone should have caused gold to go up by about $100.
Trifecta of long weekend, French downgrade and QE3 — all supposed to be extremely bullish for gold and silver based on the conventional wisdom, and what do gold and silver do?… Please click here or the title below to read more.