What a start to the week. Gold futures opened last night and soared, trading as high as $1,704 in the June futures. The buying was fast and furious. Equities are down the limit until 9:30 EST, bonds were up over 10 points, and the world as we know it was ending. Investors were selling everything except gold and bonds. Crude oil was down over $10 overnight.
The key to the move was the weakness in silver and platinum, although both were higher but never had the same power as gold. Silver and platinum turned lower an hours ago with gold still flying high. What we are seeing now is gold weakening and now down on the day $42 from its overnight high.
We will look at this as a temporary top in gold and look for some sellers to show up, possibly taking the yellow metal back to the $1,640 level if not a little lower. We can look at this as a classic pullback from overbought markets. Once gold finds support, there should be some consolidation before another run at the highs. Look for the metals to be under pressure today.