Goldtent TA Paradise

3 Things That Don’t Affect Price of Gold

1. red label says:

   March 11, 2019 - 9:35 pm at 9:35 pm

   Just some thoughts?

   Wouldn’t it be more useful if the CB buying/selling actually defined the particular CB’s on the buy/sell side of the trade. is it possible the CB’s use Gold to stabilize currency or to hedge a particular currency lower relative the $US or vice versa? It would look on the surface that a $hit tonne of $Gold moves every time there is a so called rally/bear. But who is the pitcher and who is the catcher? Maybe CB’s sell into public demand to control the price of $Gold or Buy to stabilize the price? As far as interest rates and inflation can’t that be a cause and effect scenario? IMO there was a triple top in the $USprice of Gold in the 80’s Jan 80 Sept 80 Jan 83 look at the value of the $US in 1983 and the price of Gold in 1983 can you explain that..? As far as the 2005 to 2011 portion of the CB Libya was selling Oil for Gold and the Kuwait/Iraq/Afghanistan war(s) were in full swing. There were also 3 or more currency accords during the 80’s and the Euro Zone formation not to mention the the Euro currency was adopted. Fairly certain CB heads don’t wake up in the morning and decide on a whim to exchange a tonne or so…..

2. Paul says:

   March 11, 2019 - 9:47 pm at 9:47 pm

   Thanks Jordan,
   Agreed…

   NEVERTHELESS
   Since 2011 physical gold has been used as “collateral of last resort” by commercial and central banks. Hence the tight correlation between, for instance:
   1. BofE gold custody versus the LBMA fix https://bit.ly/2Hkp1nV (see chart one-third way down)
   2. Foreign Institution USTs in Fed custody versus the LBMA fix https://bit.ly/2SYtzS0 (see 2 charts one-half way down)
   3. And here’s the overall ‘Three Stages of Gold’ theory (collateral, fear, reflation) which is very much ‘primary trend’ related https://bit.ly/2XOXjo4

   Just saying, because I think this kind of esoteric relationship might be of interest to a ferret like you. You’re chartered, so maybe there’s a macro indicator you can gather from the above.

   I believe we’ve seen the worst of gold as ‘collateral’, and are at the beginning of a big ‘fear’ stage… which will intensify as hope for a ‘reflation’ stage collapses. Which I think is pretty much your thesis to.
   Anyhow, success: P