I don't think Cypress is the only contributor to gold's decline. There's a scramble for liquidity. The European banks are insolvent. Japanese institutions are ignoring their own risk parameters related to the volatility of the JGB market by not selling JGBs and instead are raising capital by selling gold. Japan is playing a very risky game and there are already signs that it is not working. If they are successful in engineering a 2% inflation rate then it will force up yields on JGBs (it's already happening with yields on 30Y JGBs rising to 1.62% from near 1% a few weeks ago) and the last thing Japan needs is increased interest on their national debt which is 240% of GDP. Here's more:
Gold, Silver In Asian Liquidation Mode As China Growth Slows More : http://www.zerohedge.com/news/2013-04-14/gold-asian-liquidation-mode Excerpt: Liquidation is certainly the theme of the evening - investors are selling JGBs (6th day in a row of multiple-sigma moves in long-dated Japanese bonds 30Y +56bps off its post-BoJ lows at 1.60%!),
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