Of course water baptism is a spiritual circumcision. The Colossians passage fits in perfectly with the passage in
Romans 6 in which Paul discusses water baptism as a baptism into death explaining metaphors in verses 4-5 by verse 6 in that an actuality takes place at water baptism, that is, the body of sin is destroyed. How does this happen? "In whom also ye are circumcised with the circumcision made without hands, in putting off the body of the sins of the flesh by the circumcision of Christ"
Romans 6:3 Know ye not, that so many of us as were baptized into Jesus Christ were baptized into his death?
4 Therefore we are buried with him by baptism into death: that like as Christ was raised up from the dead by the glory of the Father, even so we also should walk in newness of life.
5 For if we have been planted together in the likeness of his death, we shall be also in the likeness of his resurrection:
6 Knowing this, that our old man is crucified with him, that the body of sin might be destroyed, that henceforth we should not serve sin.
7 For he that is dead is freed from sin.
8 Now if we be dead with Christ, we believe that we shall also live with him:".