Gold and silver consolidated yesterday's gains overnight, as global equity markets recovered a bit and a statement from the US Treasury Secretary that trade negotiations between the US and China are scheduled to take place in two weeks offered a bit of optimism on that front.

The slight deterioration in global economic optimism yesterday in the wake of last week's sudden change of fortunes in US/Chinese trade relations, a smattering of disappointing global PMI readings, and the prospect of Middle East-sourced political tension at the UN this week sent gold and silver sharply higher yesterday.

Seeing the US Fed carry out a fifth straight day of repo operations to squelch volatility in short-term rates keeps another safe haven issue on the dashboard.

While crypto currencies have begun to advertise against gold investments, the presence of any advertising on safe-haven type investments should benefit gold and silver as well.

There were reports on Monday that the US actually canceled the Ag mission visits by the Chinese, which suggests that the interchanges between the two countries remain highly volatile.

Treasury Secretary Mnuchin's statement that trade negotiations would resume in two weeks could be view two ways. While it doesn't shut the door on an agreement, it could also be viewed as "buying time."

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