From Jordan Roy-Byrne: Disaster in precious metals land has been averted (for now) as the market unwinds what appears to be sudden excessive bearish sentiment.
Surveys such as the daily sentiment index reached single digit levels for Gold and Silver (the previous week) while the net speculative position in Gold and Silver has declined dramatically in recent weeks. This is encouraging for precious metals bulls as it portends to a rally but negative sentiment by itself cannot change the broader trend.