A Case of the Uglies

The headline in Reuters pretty much sums up the carnage going on in the metals markets ...

Gold touches 3-month low as investors cut risk

LONDON, June 27 (Reuters) - Gold on Wednesday hit its lowest in more than three months and silver fell to its weakest in more than five months as commodities were hit by the latest wave of risk aversion in global financial markets.

Gold has traditionally been seen as a haven for investor money but more recently has been put in the same category as other commodities, which are considered risky investments.

"We've seen this countless times. When there is a whiff of risk aversion...gold like any other commodity tends to get affected by long liquidation and that's what we're seeing," said Robin Bhar, metals analyst at UBS Investment Bank.

XX My take -- mining stocks cratered yesterday, so now isn't the time to sell them. A "3-month low" or other benchmark often comes right before a significant rally. We'll do some risk reassessment of our own on open positions.

Check out my new gold and energy blog at MoneyAndMarkets.com