Silver is in a no man’s land after failing to whipsaw back above the MA 50’s yesterday.

This is an updated view of a chart that was created so long ago I can’t even remember it. I just found it rummaging through a chart list. Anyway, it is untouched from its original creation, which was long before HUI lost the first support level at the green dotted line.

Gold is not about inflation and in this cycle it, as a squarely risk ‘OFF’ asset, is about the opposite, the deflationary unwinding of the inflated excesses which now are no longer clustered in commodities and global markets.

So I would say to gold bugs that what you must do is “put your dogma on a leash.”

Gold stocks very logically bounced from the equivalent of HUI 152, which is support from 2008 and the 2002-2003 period.

Last week the gold market was ambushed twice in close succession – first by the Fed’s “everything is fine” statement (no-one can have been surprised by the well-telegraphed temporary end of “QE”) and then by the BoJ’s surprise assault on the yen.