March 25, 2020 (Gold Market Wire) - Gold has calmed down after yesterday's price discovery mayhem which caused a $100/.oz spike that was later erased. Now that some sense of normality has returned, gold has moved back down and appears to be in a standard 'back and fill' on the way to challenging horizontal resistance just below $1650, and then, the recent high of $1703. The 20-day moving average is holding, for now, and the line of support is $1573.65.

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During yesterday's madness every rumour in the book took flight. Delivery failure...contract spec imbalance...the end of fiat money...and a whole lot more. The reality is far more sanguine. Buyers went look for offers (shorts covering or new length - it does not matter) and found a market that was more or less closed, or in a state of disarray...i.e., London in the midst of closing up for Corona. Then, while New York was asleep, everyone scrambled onto the COMEX to find what resting offers they had.

As we predicted - the minute New York woke up, order was restored, and the price spike disappeared.