“””IBs selling off commodities to raise cash””””
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You are indeed correct about this. Hedge funds who operated on 10% cash and 90% margin until 2 days ago are dumping gold and commodities. In an effort to raise cash, investment banks have raised margin requirements on hedge funds and commodity pools. Massive margin calls along with a bounce in the US$ is the selling pressure. Gold has stabilized at about $920-$925 and the bounce in the $US Dollar Index is going to be short lived.
That’s IMO.
That’s exactly my take also, for what it’s worth. Today is OPX, but come Monday I think that in terms of the stock (and bond) market we may be headed back into the storm.