"The price of gold is NOT determined by physical gold supply and demand, true or false?"
The world is a complex place, and is rarely understood properly in terms of the "true or false" responses to simple propositions. I will answer the question a best I can"
The price of gold is determined by the perceived supply and demand of physical gold. It so happens that the opinion of several thousand COMEX day traders has the greatest weight in determining that perception because it is their capital, deployed in the gold futures market, that underwrites most of the price risk on physical gold that is available for sale in the physical market.
That is why the price of physical gold can never be disconnected from the futures price.
