What do we see?

Last week December gold was up around 1% and silver close to 3%.  The sovereign debt crisis in Europe will most likely be the market driver this week.  Chancellor Merkel of Germany and President Sarkozy say they will have a plan by the November 3-4 G20 summit in Cannes.
Our feeling is that although the crisis is mostly good for gold and silver, if the market tanks it usually initially takes everything down with it.  There are no really good places to be at the moment which makes the dollar look good as a safe haven despite the economy.
We see gold going up this week on safe haven buying but longer term depends on the debt crisis medicine dished out.  If the market isn't satisfied we could see a wild ride to the down side.  Below is the Yahoo chart for GLD in blue, SLV in red, and Dow for last week in green.  You can see silver was the winner.  We currently hold GDX calls for October.