While many have been waiting years for the China bubble to burst it seems that maybe that time is here, or at least that is what the commodity markets are telling us. Just when it seemed that commodities were ready to rebound we saw one of the world's biggest hedge funds, and outspoken China bull change, its tune.
After gold's midnight massacre it seems that the selloff is acting like a cancer across the commodity complex. The market is fearing that the person or government that sold massive quantities of gold in the middle of the night may know something the rest of us does not.
The U.S. Comex gold futures has declined 1.21% this week to $1,143.90 and has fallen 2.38% month-to-date. This week, the S&P 500 Index has risen 2.31% and the Euro Stoxx 50 Index has surged 4.21% while the crude oil futures have declined 3.47%.