What came first....the chicken or the egg? Can't answer that but a strong contribution to the recent GOLD DROP has been "forced liquidation" of GOLD in the GLD ETF to keep their ETF "in balance" with the GOLD PRICE.
In December GLD reached it's high in it's gold holdings @1353.4 TONS!
As GOLD traded in a downtrend since December and GLD was trending down, GLD was seeing liquidation.
RECENT PANIC SELLING has eventually forced GLD to sell 169.8 TONS of GOLD in the past 4 months....1/8 of it's entire holdings! This has been a major effect in golds recent dive. I think this panic selling is ending and GLD will settle and eventually change direction again to bullish trend.
The Cypress news was also a major contributer in golds drop, but this was really "negative sentiment" forced by the MEDIA....not a fundamental issue. Cypress only holds 13.9 TONS of gold and the overwhelming selling was the GLD selling of it's 169.8 TONS of gold. It's also likely that any partial soverign selling of gold in Europe would quickly be bought in "private trade" by a combination of Asian countries (China) , South American countries or Russia. If a agreed upon trade was announced....this would actually be very bullish for gold.
PANIC SELLING of GLD investors.....this panic selling does not last. It's probably over as I type.
Look for everything to "settle'....and then rebound.