By Stewart Thomson | 23 May 2017
321GOLD — Since Chinese New Year buying peaked in February, gold has essentially traded sideways with a mild upside bias.
Indian dealers are waiting for the government to announce the GST rate for gold, and it’s too early for them to begin stocking up for Diwali.
So, the price discovery ball is now in the US central bank’s court. I’ll dare to suggest that most gold market investors don’t fully understand the relationship between interest rates, money velocity, and gold.
Gold rises when events create or signify rising risk, regardless of what those events are. Sometimes a decline in interest rates increases risk, and sometimes a rise in rates increases risk. […]