Possible break to $1,680 per Oz. still looking very likely...

Commodities sold off, again, but more viciously, particularly in the belly, as a dismal 7-year note auction put the cherry on the cake in exhibiting the market's current aversion for rates.

Fed's Bostic (voter) said faster recovery in GDP vs jobs may reflect business hesitation to hire for fear of having to be laid off again and stated the Fed will be very patient in considering any policy change. Bostic added he is not worried about the fall in commodities and is not expecting a need to think about tapering "for a while" and also stated a twist of bond purchases to longer term securities is not at the forefront of policy discussion. (Newswires).

On a technical approach, the current weekly Fibonacci is pointing directly at 1680, which is roughly 850 pips away. Possibly over the next couple of months we will see a further decline.