RE: Gold price down23 Jun 2023 11:52
Tin foil hatty is about right Jammin...I look at those cracker jack's in the same light as the people who spend all day on twitter shouting HODL on Bitcoin.
Gold is a currency, so like all currencies it's priced pretty much to perfection. M2 money supply is what really moves gold.
The tighter the dollar liquidity the more advantageous it is for exporting EM countries to hold dollars, which they'll receive organically from their trade balance....As liquidity loosens and the value of dollar falls gold becomes cheaper to buy where as the dollar becomes more expensive to hold from a purchase power stand point.
What happens in turn is that the EM central banks are then forced to sell their dollars to buy gold and it's this action that really drives the price of gold.
Follow central bank purchases from Eastern Europe, China and other EM commodity producer nations.
Fyi Poland announced this week that it bought another 16 tonnes in May versus the 12 tonnes in April. Follow the DXY too, generally when that goes up, gold goes down and vice-versa.