Ugly drop in the precious metal
The Johnny-come-lately precious metals crowd piled into silver in the past few weeks and now it's a rush to the exits.
There's some panic selling hitting at the moment with silver down 11.2%. The low so far is $25.85, which is just below the July high (acting as support).
I don't think anything is fundamentally changing for precious metals but it simply got too frothy and the catch-up silver trade is always filled with weak hands. One spot to watch continues to be Treasury yields. I don't think rate comparisons are the defining feature of the trade, but they're a cue to sell and rates are moving up.
