Selling 1M ounces of gold: China intensifies correction

All Good Things Come to an End
Gold remains under pressure, continuing its downward momentum. It is currently testing the 21-day moving average. A close below this level – and the key support zone at $3,200 – could open the door for a move toward the trendline established in January, which coincides with the 50-day moving average around $3,100.

The RSI index for gold is still far from the oversold zone…

Check What Xi Is Doing
That “someone” who stopped selling government bond futures / buying gold is still out of the market. Xi is definitely taking a break on May 1st…

Massive Sell Order
Gillard from Goldman notes: “Today, China liquidated about 1 million ounces on the SHFE and SGE exchanges.” China has essentially sold what it bought last week.

Gold Sales
The weighted average entry price for ETF gold buying flows since the start of the year is $3,010 per ounce, with recent purchases amounting to $4.7 billion in the $3,175–3,450 range. Further ETF outflows would weigh on gold prices in the short term and could potentially endanger newly established positions. This would coincide with several major CTA sell levels at $3,300 and $3,175, further intensifying short-term price pressure. (Energy Aspects)

The Dollar Is a Factor
Gold is used to “liking” a weak dollar. Watch closely for any dollar demand, as it quickly translates into gold weakness. The chart shows gold versus the DXY (inverted).

CTAs Need to Sell Some Gold
It’s not about momentum but rather volatility, writes GS.

Gold Is Not a Risk Asset
The gold versus SPX comparison (inverted) speaks for itself.

A New Sheriff in Town
The gap between gold and BTC has now virtually closed.