The 'gut check' in metals was very short-lived, as the precious metals rallied with the melt up in financial assets on the debt monetization plans out of Europe to save their banks. It was 'risk on.'

What next? We may have some follow on, but continued upside depends on additional QE3 from the Fed, as well as the actions by all the world's central banks to monetize the private banking debt and inflate their currencies.

The metals will do well in this kind of an environment. But the sailing is not yet clear. There will likely be more upside after corrections, but if this works, then the major test will come with the December option expiration.