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Last Friday our headline for The Weekend Report read "Lock 'Em Up Till They Reach An Agreement." Well, no one was locked up exactly, but conditions have finally forced the parties in Washington back to the negotiating table regarding the budget and debt ceiling.
 

All major stock indices were up a bit over 2% today, reacting positively to the bone the Republicans threw to the President. We say, better check your guns at the door before entering the saloon. Obama is a cool customer and even though he may not show it because of the ice water in his veins, he is pretty ticked off at the right wing.

Today the United States enters day nine of a partial government shutdown, minutes are released from last month's FOMC meeting and President Obama nominates Janet Yellen to be the next the chairman of the US central bank. This triad of events were the major factors that led the US stock market to trading higher and the US dollar getting stronger.

The incoming fire from Washington to the rest of us trying to get along has gotten so out of hand that more and more people are turning away from the crisis to watch, say, the saga of the 9-year-old stowaway to Vegas on a Delta flight.

Fundamentally, it's hard to get a grip on where the precious metals are going for more than the next 24 hours. News flies hot and heavy. Today's "yes" is tomorrow's "no." One day at a time, as the saying goes.

discuss what is real and what is not.

It doesn't matter inside the gates of Eden.

      - Bob Dylan, Gates Of Eden

      

As if precious metals traders did not have enough to think about given the economy and the Fed, the princes and princesses inside the gates of Washington have handed us another grenade to play with.

Gold and silver fought off the best efforts today of profit-takers who looked to cash in on yesterday's sharp rise in prices. The metals are about even or dealing with a small loss with an hour to go in afternoon trading. 

"Come on people, smile on your brother..." 

         The Youngbloods, "Get Together"

 

"Life goes on long after the thrill of living is gone..." 

          John Mellancamp, "Jack And Diane"

 

As the U.S. government throttled toward a shutdown, money invested in all instruments stampeded toward the sidelines around the globe.