A new high in Gold prices in YEN combined with an implied default in JGB’s (on April 5th) in an environment of high distrust of BOJ and other central banks and a great need for cash to settle debts (and margin calls!) in an insolvent Japan would sound like the perfect trigger to me. Wait till you see how the markets behave when JGBs follow the same path - and they will…this GOLD implosion will likely look small in comparison the new ones that are created.
The funny thing is the types of liquidations we are seeing are not just liquidations, they are destruction of capital, which may in the end cause a muted US and German bond rally followed by margin call selling even overwhelming the best government bond markets. If there is no place to hide…then we get a freefall.