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