Determinant of Gold “Price”

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It is not supply and demand which is currently driving the gold price

– if it were the very movement of the huge volume of gold from west to east, which has been so well documented in recent months, would have been sufficient to drive the price far higher – even taking into account the outflows from the ETFs, which have been way more than countered by the eastwards gold flow.

There are other bigger forces at play here, forces that are also responsible for changing sentiment with regard to gold and thus persuading weak holders to offload their holdings.