The sell-offs this week were apparent with some major sellers taking control right at market open for four consecutive days.
Whether it was Apple traders forced to sell winning collateral to meet margin calls, or algotraders taking control, it was clear that a group of sellers forced prices down.
Remember, gold is now being accepted to meet margin calls by many financial institutions. I mentioned this first back in 2010. Since then, gold has become a collateral standard to meet margin calls by many of the major institutions. As a result of the massive selloff earlier in the week, there's a good chance gold was forced down to meet margin call demands on losing bets.
While you should be careful as gold and silver may fall with the broader market (to meet margin calls etc.), the overall outlook remains the same.
As I said before, we're in a period of stagflation. The inflation cues are here but there's a deflationary drag pulling on the economy; that is why the Fed has been able to print endlessly without an immediate and dramatic rise in inflation.
I remain long both gold and silver. It's pointless to reflect on every small percentage drop or gain in this market. Hold tight and stay away from media manipulators; they have little clue as to the real price action of the metals.
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