Gold dumped in forced selling, dollar falls with it

$GLD is sitting at oversold levels with RSI under 30 while the dollar trades below 100.

That combination doesn’t make fundamental sense. Gold down, dollar down, fear at 14.9.

This is the “sell what you can, not what you want” phase. Margin calls don’t care about your thesis.

March 2020, gold dropped 12% in a week before the equity bottom. Q4 2008, gold fell 20% before stocks found a floor. Both times, gold’s capitulation was the late-stage signal.

Here’s what’s interesting. Copper is holding up relative to gold. That ratio surged 3.6% over five days. If this were real deflation, copper would be leading down.

Portfolios are breaking. The economy isn’t.

I think $GLD bounces hard off these levels over the next couple weeks once the forced selling exhausts itself. Gold recovers first, then equities follow. Same playbook every time.

What’s your read on the liquidation cycle. Are we close to done?