Gold and silver had an explosive two-day rally, up 2% and 5.8%, respectively, to close out last week as investors bought gold as protection against inflation. Although prices had been trading weaker all morning, they spiked after Standard & Poor's maintained its triple-A rating for the U.S. but cut its outlook to negative, signaling that a ratings downgrade could come in the next two years. The ratings agency expressed concern that U.S. policymakers haven't addressed critical fiscal issues.
Several other economic readings offered more appeal to gold. The National Association of Home Builders' April housing market index also fell to a reading of 16, compared with market expectations that it would remain unchanged at March's level of 17. On Sunday, the
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