On Tuesday the equity market got pounded. Stocks were basically in a free fall. By the end of the day, the equities were down 800 points. Today is a national day of mourning and markets will only be trading electronically today until 9:30. There is a slight bounce; the Dow futures are up 150.
For those who believe that the metals are fear assets, Tuesday had to be disappointing in that gold and silver did not spike higher. In fact, they closed well off their highs. This action should show you one thing -- price drives markets, not news.
From a technical standpoint, gold and silver look great and should hold support and continue their ascent on to new recent highs. Gold held $1,240 overnight, confirming the breakout. Gold appears to be headed to $1,275 and silver to $15.