Down or Up or Both? - Take Your Pick.

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Silver futures for December delivery fell 6.7 cents, or 0.5 percent, to $13.153 an ounce on the Comex. Silver has dropped 12 percent this year while gold has slipped 2.6 percent. Silver will trade at $14.70 an ounce in a month and $16.40 in three months, UBS AG said today in a note.

The Swiss bank said it holds its one- and three-month forecasts for gold prices at $850 an ounce and $900 an ounce, respectively.

``All that stands in the way of an impressive tactical gold rally is a correction in the dollar,'' John Reade, UBS's head of metals strategy in London, said today in a note to clients. ``If you are confident that the euro has seen its low against the dollar for the near term, buy gold now.''

The gold market ``will begin to shift on fundamentals, which lend much support to higher prices from here, such as the deteriorating situation in the credit markets and geopolitical tensions,'' HeritageWest's Preston said. ``That should put a floor on any further price declines under $750.''

OK, just as long as we note that $750 is still some $60 away from current levels. As is the near-term target for the upside. Looks like a balanced act.

More significant econ data is in the pipeline for tomorrow, as is Mr. Bernanke's set of remarks on Friday about financial stability. Of late, that has been quite the oxymoron. Linguists have already bestowed the honor of word of the year to 'subprime.'

Happy Trading