In what is increasingly peculiar market action, gold dropped over $100 intraday, following triggering of $1700 sell limits, at which point sell signals hit every bid all the way to $1685 then a knee jerk bounce appeared, in some rather chaotic late day trading in paper gold. Whether this is due solely to algo driven liquidations following the earlier described shift in sentiment, or has some assistance from central banks is irrelevant as anyone and everyone who is happy to convert paper fiat into hard currencies is taking advantage of this latest short-term rout, to prepare for the next battery of printing which will come with 100% certainty. Remember: as we have been saying since the summer of 2011, Bernanke needs a tumble in stocks to get a green light for more easing, and he obviously won't get that with the S&P where it is, nor with WTI still sticking to $107.
$1700 sell limits triggered:
Why 100% certainty? Because one you go exponential, you don't go back.