Gold & Gold Miners Hammered

Nevsun (NSU) is down nearly 10%, knocking out a big chunk of the gains I have in it. A lot of gold and silver miners are down 3 to 5%, with spot gold down almost $30 from its intraday record high.

A correction in gold and gold miners was overdue and once again GDX fails to reach a new record high above March 2008 levels. If this is part of the broader deflationary trend, today's move in gold makes sense. However, if this is a reaction to the yuan exchange rate, it's the opposite of what I'd expect. Just as the broader stock market reversed itself this afternoon, I'd expect gold to also reverse itself overnight or tomorrow.

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