Sarkozy loses first round in the French elections. This creates the scenario that the French/German alliance on fixing the European debt issue is at risk. PERCEPTION: Euro drops, equity markets globally take a hit. I think it was more the Euro zone manufacturing index which was weaker than expected. Its an uneasy market that prompted the excuse to take money off the table. Metals did not avoid the weakness as investors are generating cash. Gold again is testing the $1,632 level for the third time. If we break through, a move to the $1,608 level is in the cards. The dollar will be key to determining golds direction. Handy tracking tool for your precious metals - check it out: bulliontracking.com
