Gold breaks toward $1,700.

Following the raising of the US debt ceiling and the subsequent downgrade of US debt, gold began to rally. This time overseas money is not going into US Dollars, but into gold. When overseas markets opened tonight (Sunday night), the rally was confined to gold, but silver is also up - not as much as gold. Gold was reported to have reached the 1,696/oz level, so some of the buy ins may be occurring. It will be interesting to see if the NY market follows up tomorrow and push gold over 1,700/oz.

As the US economy slows, we see oil dropping as well.

We should look for correlations. With gold up, will silver follow? and with the PMs up, will the miners finally get off the dough? Tomorrow will be an interesting day with the DOW dropping over 100 points. Look for a big reversal when the FED intervenes.