Today's action removes any remaining doubt regarding the Bank plan to break the price of Comex Digital Gold and bring it all the way down to the 200-day moving average.
Having now seen this play out again today, it is all crystal-clear for anyone not willfully blind. POSX is UNCH. Bonds are UNCH. CNY is UNCH. CDG is smashed. The same situation as yesterday and the same result.
And as you can see below, ever since the March FOMC minutes of last Wednesday, the 8:30 ET volume spike and smash has been a regular occurrence. Keep in mind that Comex trading resumes each day at 8:20 ET...so this is not simply opening tick volume.
As noted last Wednesday, price was capped within 15¢ of the 50-day moving average in the hours before the March FOMC minutes. The initial target was then a break of the 100-day which came on Thursday. When subsequent selling failed to decisively break the 100-day on Friday and Monday, sufficient firepower was deployed today to make it happen with no room for doubt.
So now the focus turns to the obvious target of all this...the 200-day moving average. A breach of this level would lead to an automatic and instantaneous flush by the HFTs that are long Comex gold. Once this key technical level is broken, these pre-programed machines will liquidate longs and some will even switch to short.
For an example of this, see the chart of Comex Digital Silver below. Note how the selling accelerates once the 200-day is broken to the downside.
And this type of selling capitulation and CoT washout is very clearly the aim of the market-making Banks that dominate the Comex. As of last week, the Large Specs in Comex gold were still NET long 105,400 contracts. While this is paltry compared to the 316,000 they were NET long in the summer of 2016, this is still way up from the NET flat and even NET short positions we saw back in October and November of last year.
So, how do The Banks cover their own shorts by inducing The Specs to sell? They break the 200-day...and they can even make this happen counter-intuitively to the "fundamentals"...forcing the supposed experts at shitco and the WGC to come up with all sorts of convoluted rationale for the selloff.
So, anyway, here's the chart that we'll watch the rest of the week...Fed fundamentals, physical demand and seasonality be damned.