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Gold prices are down almost 2% this morning - the biggest drop since Nov 2016, breaking below the key $1300 level, down to 6-month lows.

Silver is even worse - crashing 4%, back below $17 after a huge week of outperformance.

In fact Gold has fallen to the same level it was at right before its spiked on Trump's election...

Having traded around $1300 for a month, heavy volume broke it below 2018's lows and $1300 support...

For context - the last 4 hours have seen around 260,000 contracts dumped through Gold futures or around $34 billion notional!

What is most interesting is the last few days have seen Yuan and Gold trading very much in sync, but as yesterday's trade-war headlines started to strike, Yuan tumbled - but gold held in there... until just now!

Silver is getting slammed too - back below $17 on heavy volume...

 

Also of note is the fact that Gold/Silver just exploded higher...

 

After tagging its lowest level since Thanksgiving

 

It would appear someone is implicitly betting on a huge dollar spike - which is what would likely happen in a full-blown trade-war.