As a matter of fact, very few commodities were in the green today - just about everywhere one looked, it was lots of RED on the screen. The reason - hard to say for certain but with the Dollar up more than 1/2%, it would have taken some pretty firm fundamentals in these individual markets to shrug off the macro-related selling. As it was, any market whose fundamentals were weak, was especially prone to a bout of selling today.
Gold simply had no reason to move higher today against those headwinds. As can be seen on the chart below, it is working its way down into a chart support region. If it holds here, the bulls can claim a sort of moral victory given the strength in the Dollar and the continued weakness in the Commodity Sector, especially the grains and crude oil (think food and energy and then think no inflation issues there).
Tomorrow, Friday, is the usual "no fun" day for gold as it tends to get whacked a lot at the end of the week for some reason. This is however a seasonally strong period for the metal so it might be able to dodge a bullet. We'll see. Right now the short term momentum is with the bears after the failure at chart resistance. The probe lower is meant to uncover whether or not the bulls are hanging around or not.
here is one of the commodity sector - the Goldman Sachs Commodity Index. There is certainly nothing in this chart that would indicate the least bit of fear in regards to rising commodity prices. If you want to know why silver puked today, just study this chart - silver is joined at the hip with the broader sector.
By the way, gold failed to extend much past the 50 day moving average and has instead plunged back below this key level. This is one of the reasons the selling is now coming back in once again. Hedge funds see that failure as another sell signal. It is going to be up to Asia to put a floor in this market once again.
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