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With markets in a sharp correction to start 2016, market commentators nevertheless still hold a downside bias for gold. The rationale for this downside has shifted however, from a fear of FED normalization to a fear that deflation and associated asset-capitulation would take gold lower in a "dollar short squeeze", reminiscent of gold's sell off in 2008. With a well-grounded framework for analyzing the gold price, we fear neither rationale; we still view a significant fall from today's level an unlikely outcome, or temporary at best.

First thing this morning, after the BOJ's announcement of negative rates which promptly pulled all treasury yields around the globle lower, we asked a simple question: how big large the global negative rate bond universe grow to?

How many trillions in government bonds are now sub zero

— zerohedge (@zerohedge) January 29, 2016

The US total rig count dropped 18 to 619 in the last week with a drop of 12 in oil rigs (to 498) as the ongoing lagged drop of crude drives rig counts every lower. Perhaps oddly, given the rig count decline, WTI is tumbling as a 12 rig drop is clearly not enough...

• *U.S. TOTAL RIG COUNT DOWN 18 TO 619 , BAKER HUGHES SAYS
• *U.S. OIL RIG COUNT DOWN 12 TO 498, BAKER HUGHES SAYS

The trend continues...

And it appears the market wanted more rig count declines...

Charts: Bloomberg

What will they call this "crisis"? Or is it transitory and different this time?

Thanks to BoJ's idiocy, The Dollar is surging once again...

As we noted earlier, in a paradoxical U-turn, one which caught everyone by surprise as a result of Kuroda's own promise just one week ago not to engage in NIRP...

... and two months after the ECB's December 3 disappointing announcement led to a historic surge in the EUR, today countless macro hedge funds have been left reeling with huge losses once again, as many had recently turned bullish on the Yen...

... only to be eviscerated by the BOJ's negative rates announcement.