The market had been talking about these big liquidation trades below $1515 in Gold for almost a year so don’t be surprised by the venom in the sell-off. Central banks will use this opportunity to buy at cheaper levels and the Russian, Korean, Turkish central banks are no doubt sharpening their pencils to start buying near $1250.
Even if Gold does steady somewhere around present levels, I still expect to see the AUD/USD play catch-up down towards 95 cents, especially if the commodity prices keep tumbling.