Russia is considering raising mineral-extraction taxes on mining companies to narrow a budget deficit of 4 percent of GDP, reports Bloomberg. The Finance Ministry proposed more than tripling taxes for extracting most metal and fertilizers for next year. This is a threat to Russian mining companies and would increase costs.
In the meantime, for all of you Fed-followers, not only did they state their intentions to keep rates near zero for the next three years, but they even significantly increased their buying this past week to $68 billion in open market operations.
China has a mini vacation in the first week of October. Chinese consumers will spend aggressively during their holidays. Gold and silver demand (by way of jewelry purchases) in China should beat street expectations by a big margin.
In summary, the last lows struck in each of this charts on September 8th should be used as a strong stop for anyone trading the shorter term in these charts. As long as we hold over that support, I am looking higher to begin the next rally phase
