On Thursday we said: "A word of warning, though. One-off events like the downing of the airliner tend to fade quickly from the minds of investors and traders. Be aware of this instant amnesia factor."

While the world is not forgetting the horror of the wanton violence against helpless world citizens, the precious metals markets are not viewing it as a decisive factor.

Some years ago, a friend of ours had a soft bumpy growth thingy on his shoulder and was worried to death. He finally got to a doctor. The worst was going through his mind. In about three seconds, the doctor said, "Don't worry. That's a wen." It's a harmless under-the-skin secretion that goes away usually.   

Apparently the Malaysian Airline plane that crashed in Ukrainian territory was shot down by persons unknown at this point.

This signaled the precious metals markets to go higher. It also prompted U.S. Treasuries to hit higher prices/lower yields. Oil also zoomed.

Gold and silver found some support today via bargain hunting and general reconsideration of Janet Yellen's comments yesterday and today before Congress concerning Fed outlook. However, a number of factors combined to dull the blade and the precious metals have fallen back though still in positive territory for the day.

Janet Yellen's testimony today before the Senate Banking Committee was not much out of line with what she and the semi-united Fed have been saying since its last meeting. It was marginally - and we stress marginally - more hawkish than earlier statements.

Not a great way to start the week for precious metals bulls. Fundamentally, there was a rather unusual confluence of events that separately could not have caused as much havoc as they did all together.

This week has brought us some very interesting fundamental input that's influencing precious metals prices.

This week has brought us some very interesting fundamental input that's influencing precious metals prices.

Although it should not have come as a surprise to the world financial community, there seems to have been a bit of shock and awe created by the news that Portugal's Espirito Santo Bank conglomerate was missing debt payments. An audit in May shouted the warning, but it largely went unheeded.

The summer wind came blowin' in from across the sea...
      - Summer Wind

We mentioned last week that sometimes technical forces become so strong that in essence they become part of the fundamentals.

We saw just that today in gold trading and to a narrower extent in silver.