The overnight price action is very positive for the metals. We were due for a bounce after last week’s takedown and one day can tell us a lot but won’t be definitive in itself. What I wanted to see was a strong bounce, which we got overnight up from Fridays low around 1715 for gold to almost 1760. Then weakness earlier this morning that gave back a significant portion of the gain. Now we are attempting to bounce again and that plus how the leaders do when the mining stocks open will tell us a lot going forward. If the two leaders that telegraphed the smash, RGLD and GSV, show relative strength that will go a long way to signal the bottom is in. Silver continues to show relative strength and leadership(see my comments to FGC in his silver post below) and that is the best signal that the takedown is over.