Stock Market Breakdown Sparks Massive Losses for Metals

Yesterday's market performance was quite telling, as metals such as silver and gold experienced significant losses despite the release of economic data that met expectations.

The Producer Price Index rose 0.4 percent on the month, matching the consensus, but this had no impact on the market's reaction to the stock market's breakdown.

The S&P 500 futures broke below the June high, and stocks closed below their rising support line, leading to a bearish confirmation that could result in waterfall selling with massive spillover effects for other markets.

Copper, silver, and gold all sold off hard, with silver being the worst performer among them. Silver's price fell through $66 and then $65 this morning, taking out both its 50-day and 200-day moving averages in a single session.