The gold sell off of the last four days looks overdone at this point.
The yellow metal bounced off an important support level at $1306.
Given the seasonality factor and oversold conditions, a significant bounce seems due.
Over the medium term, as banks struggle to improve their tangible capital ratios, gold will rise as trust in the banking system diminishes.
What is most telling, is the fact that six Canadian banks, supposedly the most stable in the Western world, have been named as "systemically important". Therefore they qualify for "bail-ins".
That phrase, and the legislation that supports it, demonstrates the fragility of the entire fractional reserve banking system.