While we have become conditioned to accepting the morning meltdown in gold and silver prices that occurs with all too frequent visible-handedness around 8am ET, this morning’s mini melt-up is odd for 2 reasons: 1) It’s Tuesday, which means sell everything that’s not stocks; and 2) as we explained here and here, the unwind of the China CFDs could well lead to a notably higher gold (and silver) price as the forward hedges are lifted.
Here’s how that might work:
