No. of Recommendations: 1
Down ~18.5% from $5,589 to ~$4,551
The USD index is staying high - 99-100
The price you see is dominated by paper gold—futures, ETFs, and leveraged trades—not physical bullion.
When large institutional players de‑risk, the futures price can fall sharply even if physical demand is steady.
After strong gains, investors are rotating into cash and the dollar.
The other possability is that Iran and Ukraine are selling to finance their wars in the absence of external support.
Jeff
No. of Recommendations: 1
My thoughts:
Gold has a poor yield (0%). Rates moved up.
Gold is priced in USD. USD has moved up.
Gold has been in a mania. Mania doesn't last forever.
Mania investors tend to use margin. Suddenly-higher rates discourages use of margin.
TRS
No. of Recommendations: 7
My thoughts are that, as prices of equities et al drop, margin calls are being made. Sale of "paper gold" at a profit is an easy way to raise cash to cover the shortage. As Wendy has pointed out in the past, it is the hidden debt embedded in the system which is the biggest threat to systemic balence.
Jeff
