That’s about 3 days of central bank buying at current velocity and it’s certainly possible that “the market” in the form of ^GSCI saw this and deliberately jumped on it. Like Soros shorting the GBP into the weakness that existed back then.
I’m not saying “this is the bottom” or anything like that. From my research, the cost of extraction is about $1000. and the price could go there or even a tad below there. Fuel is a big part of that and fuel prices could also collapse. But literally everything else we see in the MSM is an illusion or quickly turns into one, and the “gold press” has an inordinate number of kooks as we both know.
Anyone who has ever tried to flip gold or buy it for the purpose of reselling it in a modest amount of time has been made aware of the vicious spreads involved. So I don’t think that anyone but small-amount amateurs (who have little effect on market prices) bought gold for that purpose. Thus they are not in it to flip it. That does not mean it can’t go lower, as I said.
It also seems unlikely that anyone wanting to sell large amounts of gold would telegraph their intentions so as to crush the market and thus mash the amount of money they would get from the sale. Although we don’t expect genius from bankers, particularly from a small country like Cyprus.
Our brains see a decline in price and somehow expect it will continue until the price is zero, just like we see a price rise and expect it to continue into infinity. Neither occurs.
What happens next, next-next, and next-next-next in gold is what matters to folks or entities who bought it. I can’t predict that any better than anyone else. But it would not surprise me to ultimately find out that this was a financial gang-rape of Cyprus.
It’s actually pretty easy to see when a bubble is about to pop. When you see promotions on tv (or in Parade magazine) trying to sucker the ignorant, it’s about at the end. Flipping houses, buying gold, day trading, foreign exchange. Just watch for late night TV ads or other promotions.