Gold and silver prices continue to seek direction as they zigzagged again
throughout the week. The news of the liquidity program, in which the ECB along
with other central banks including the Federal Reserve will provide US dollar
loans to European banks, may have calmed down traders; on the other hand, the
increase in US inflation rate, along with the negative results of the Philly Fed
may have adversely affected traders and may have helped gold and silver prices
to remain high. Despite the high volatility of precious metals prices, they
didnt change much from their level at the end of August: Gold prices fell by
only 0.9% and silver prices by only 2.2%. During last week, gold and silver
prices changed directions (from green to red and vise versa) four times on a
daily basis! The mixed signals that were running all week about the debt crisis
in Europe and the progress of the US economy may have affected the stability in
the financial markets. That being said, the recent rally in the US stock markets
and the rise in long term US Treasury bills yields during most of last week,
might suggest the some confidence was resorted to
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