Gold and Silver were beat down in the overnight like a red-headed step-child. Silver reached $14.50 on the September Futures contract. At one point, Gold traded underneath $1,100 dollars in the October contract, peaking below $1,090.00.
Bulls are getting absolutely crushed for any belief in the support that had developed in the precious metals for the last 7 months. The trend is down on larger time frames. It flattened out there for a little bit. But the trend has resumed it’s downward path. Veterans of the markets know … this is what commodities do! They explode in price, and then get crushed in just as spectacular a manner.
In 2009, the question on everyone’s mind was “When does Gold cross above $1,000 an ounce!“
I think today, the question beginning to form in the markets mind is … “When does Gold cross below $1,000 an ounce?“