We do not often find ourselves jogging the same track as the redoubtable Dennis Gartman who commands untold premiums for his advice, but now, it seems, he is verifying our suspicion of two days ago (Please see “Gold’s waterfall drop might be associated with the big drop in British sterling”) that something is amiss in London gold trading circles. Here is today’s chart – a second waterfall move in the gold market coincident with a second swan dive for the pound and Gartman’s take (snipped from ZeroHedge).

The key point is that, if these waterfalls represent forced liquidations to meet obligations elsewhere, the selling will be limited to the positions on the books of whatever entities need the capital. In short, they are likely to come to an abrupt end.