Year-To-Date Performance: Silver, Gold, SP 500, and the Dollar - Fitch Downgrades Europe

There are still two trading days left in the month so it is obviously too early to book the results.

And it may not be quiet next week, or the rest of the year, as Fitch issued a new downgrade on five European nations.

Fitch downgraded the sovereign credit ratings of Belgium, Cyprus, Italy, Slovenia and Spain on Friday, indicating there was a 1-in-2 chance of further cuts in the next two years. In a statement, the ratings agency said the affected countries were vulnerable in the near-term to monetary and financial shocks. "Consequently, these sovereigns do not, in Fitch's view, accrue the full benefits of the euro's reserve currency status," it said. ...

The old saying is, "As goes January, so goes the year."

If that is the case it may be a record year for precious metals but hard on traders' nerves.

It should be noted that the metals sector took an extraordinarily heavy handed pounding in December.

Let's see how the month ends.

Here's how things stack up so far.

Silver +22%
Gold +10.8%
SP500 + 4.7%
US$ - 0.1%

Gold Daily and Silver Weekly Charts

There was a really nice push up into resistance today.

Next week could be dicey unless there is some settlement in the European debt situation.

SP 500 and NDX Futures Daily Charts

There were additional rumours of the Facebook IPO coming out next week. If that happens the Street will probably prop the major markets in order to get it priced and out the door.

The market was wobbly today, with a late push in the financials failing to turn the markets green.

Gold Daily and Silver Weekly Charts - Consolidation (With a Slight Return)

We had the expected consolidation in the metals today after a spectacular rally run off the artificial hammering they took in December.

Flat now in the trading books at least, and waiting to see what happens next. I would like to see another day or two of gains consolidation with a little retrace, and then a gap and a leg higher.

But let's see what happens first. The market will always be there.