The pullback is getting violent
Gold has fallen to a low of $1,907 on the day as the sharp fall continues following futures touching over $2,000 earlier in the day. Meanwhile, silver is tailing off to a low of $22.32 or down by 9% after having touched just above $26 in Asian trading earlier.
As mentioned yesterday, the $2,000 mark may be a bit of a stretch for gold given how rapid the rise has been since firmly breaching the $1,800 level at the start of last week.
Historically, the parabolic moves in the commodities space tends to lead to violent pullbacks and today is but an example of that. For some context, the high for gold today was $1,981 and we are trading nearly $70 below that now.