The Dow is down 500 points. The Vix index is up 11%. Commodities, as a whole, are a sea of red with crude oil down nearly 10%. Any feelings of comfort that the stock market recovery at the end of last week inspired have evaporated today. Gold is bucking the trend of the commodities sell off today and has managed to catch some safe haven bids. Palladium, a more industrial metal, has not been as lucky as gold and is down nearly 4% after encountering chunky offers at $600.
US equities started the day with a heavy tone after another skid in Chinese bourses overnight. Weak August US ISM Manufacturing data and commentary from Boston Fed President Eric Rosengren that the global slowdown may prompt a reduction in his growth outlook also weighed on equities. Resistance for gold is coming in at the 100 day moving average (currently at $1,162), a level it failed at two days in a row a week ago. Despite the big moves in nearly every other asset class, silver is surprisingly not doing too much. It has traded in a small 25 cent range today and was lifted off support at $14.50 earlier in the session. This remains short term support while resistance hangs overhead at $15.