I am coming around to the opinion that the fundamentals of Gold, mining supply, industrial/commercial
demand have little to do with price. With 10s of thousands of tons sitting around in Central
Bank and Treasury vaults is simply quick cash when needed and can cause oversupply at the drop of a hat.
Its safe haven status in times of panic and hyper inflation have not been called on over the past two years
despite international tensions on Asia (Japan vs China) the Middle East and lately the Ukraine.
The tongue in cheek comments by Yellen two days ago indicates that US inflation is still a ways off
to excite the gold hoarders. How long will it take the US, Japan & Europe to finish the deflation
cycle and hit their critical inflation straps is still unknown as as such, IMO, the POG is likely
to bob around where it is now until inflation leads the way.
The money printing scenarios are confusing; the US does QE 1,2&3 and the USD goes up while Japan
does Abenomics the Yen drops and neither have had rampant inflation yet as expected.
From a bystanders point of view, it seems that the POG is inversely related to the Dow over the past few years. Could someone who is an expert please comment.
Its confusing and frustrating to say the least to get a handle on gold where some are predicting $1000
for 2015 and others $1300+ without explanations for this rift.
