That giant sucking sound is a flight to liquidity.
Up until now gold has been a recipient of the flight to safety capital; the US dollar has not. So the make-up of capital flows is very important here.
The story, however, is a bit different for the rest of the commodities complex. Natural resources and commodities can be hit hard in a flight to safety and in a flight to liquidity as investors seek to either cover their losing bets or simply reduce their risk. In either environment commodities will tend to follow equities lower.
I read a Reuters article this morning that started by suggesting China alone could create some divergence on this front. In other words, while equities will likely remain pressured in any environment characterized by risk aversion, commodities may remain supported merely by Chinese demand.
Again, I am skeptical.
No new recommendations or adjustments at this time.