Agoracom

Scenario 2: The general equity markets get caught up in a violent downturn, taking the precious metals sector temporarily with it. This could result in the XAU falling down to solid support levels at the 145 - 150 mark. Equity markets remain vulnerable and the risk of this scenario occurring remains. For now, I do not support this scenario.

Let's hope this scenario doesn't come into play because everything (equities, commodities, housing) will be dragged down in a deflationary cycle. I'm thinking the weakness will be contained to the equity market and precious metals will remain strong however.