I’ve commented a fair amount in the recent past about how gold has again been acting much more as a safe haven and occasional “risk off” asset than anything else. Silver has even been acting the same, outperforming gold in its January rally despite weakening industrial  commodities and energy.

So in one sense, it’s no surprise that–just as Treasury bonds have had a sharp correction after January’s big run– the precious metals have likewise tumbled back down. A combination of stock prices rallying and the belief (until this moment, anyhow) that both Ukraine and Greece would leave the headlines for a while has changed things back to “risk on” mode.

Thus, the fate for precious metals in the near term will likely be most affected by still by the headlines, as well as whether U.S. stocks in particular can confirm Friday’s move on the S&P to a new nominal all-time high, and use that as the basis for an extended rally.

But apart from this, we need to keep our eye on those areas where gold demand has become weaker; especially in China. While it’s true that central bank demand for gold has not been as high as it is now in half a century, overall gold demand was at its lowest last year since 2010. Slowing growth has dented jewelry sales in many places; even in China, where demand is soft just ahead of the Lunar New Year. In addition, suggestions are being made that the corruption crackdown in China has also reduced demand somewhat for gold, as it’s become tougher for warehouses and other financial alchemists to use gold, copper, iron ore and other materials to run their prior scams.