Chinese equity trading was halted again overnight for the second time this week. The yuan fixed at a new low and Chinese equities dropped 7%, the loss limit which halts trading. The dramatic sell off in China has sent shock waves through other markets with global bourses taking the biggest hit. In the US year to date, the Dow has lost 900 points while the S&P is down nearly 5%. The fear in equity markets has translated to positive price action for gold as participants once again appreciate its safe haven allure. Gold is up $50 so far this year and is trading above $1,100 for the first time since early November. After four up days to kick off the year though, gold may have trouble getting through resistance at the 100 day moving average of $1,111.50.

Silver had been dormant recently but finally awoke today and made a clean break away from the $14 handle. It closed above its 50 day moving average and will look towards the 100 day moving average at $14.72 as the next target.