Commodity Trade Mantra

Posts Tagged ‘Global Gold Demand’

A Correction-Grade Stock-Market Selloff & Investors will Rush Back to Gold Buying

Gold has managed to rally sharply in recent weeks without any capital inflows from American stock investors. They not only weren’t buying GLD shares, they continued to aggressively sell them as evidenced by a couple big GLD-holdings draw days so far in January. The situation implies the investment gold buying hasn’t even started yet & that means big gold buying is still coming.

Gold Prices Based on Historically Low Real Interest Rates - A Small Hike Won't Hurt It

Gold prices are up 26% so far in 2016 & heading into the fall the greater risk remains to the upside due to the tremendous amount of money sloshing through the system. The potential Fed rate hike this September will not hurt gold prices because gold prices are a function of historically low real interest rates. Also helping gold, is the dislocation in the currency markets, especially post-Brexit.

Here Is What Will Fuel The Mighty Upleg In Gold In 2016

With the gold positions of speculators & investors alike so radically skewed by the Fed’s extreme market distortions, vast mean-reversion buying is inevitable in 2016 to start to normalize gold investment back to reasonable levels. Coming off of such an anomalously-low base where virtually everyone loathes gold, all this gold buying is going to fuel a mighty gold upleg.

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