Thanks GC, suggesting a short term dip possibly (unless we've already seen it), but indicative of an enduring high demand? Gold to rise further IMO.
Flashback 1998 the maestro - Alan Greenspan himself referred to the federal government's power to manipulate the price of gold at hearings before the House Banking Committee and the Senate Agricultural Committee in July, 1998: "Nor can private counterparts restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise."
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Lowering lease rates would increase the incentive of buyers to lease, putting downward pressure on demand. Kind of like competing with the Fed's ZIRP policy (zero interest rates) - I think they might be trying to steer the ship.
But Central Banks can't lease AND sell gold at the same time - what a conundrum they must be facing. Not to question if they have the purported levels of stock.
So further upwards methinks. This is inticing producers to contract sell forward production at current prices. An off the book hedging arrangement encouraging the price to stay at current levels. See who takes it up.
Since production hedging is almost dead, it's likely that onwards and upwards if they don't.
