Fear In Equities But Not In Metals
Tuesday was an interesting dayfor the metals. With panic around the world, gold and silver were flat. Thefear in equities, bonds and the U.S. dollar didn't spill over to the metals,which on the surface would be considered a strange occurrence if not a bearishsign.
Last week gold made a panicbottom and then rallied about $30 from that bottom. Gold is now consolidatingand making higher lows. The pattern suggests that gold is building support asit prepares to make a run to the next resistance at $1,330.
Although many markets were drivenby fear on Tuesday, the metals were not. Traders and investors must understandthat correlations and fear don't always move markets at the same time. Gold hadalready rallied big from the lows and was fairly priced, fear or no fear.
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