Gold price, page-625

Fed and central banks created a massive gap between asset prices and fundamentals to the point where fund managers and reputable economists are saying enough is enough and let us trade and invest based on fundamentals.

I refer to one of my previous post where I mentioned that the Chinese gold fix is good for gold simply because investors are paying for real gold and silver future contracts that are based on real supply and demand, unlike the manipulated paper gold futures on Comex.

They know you are more likely to make money and have stable investment when you trade fundamentals.

Looking at oil market, there is no doubt the prices are artificially inflated, one reason is because of the weak US dollar but the fundamentals are not supporting the latest rally especially with failed Doha meeting.
It is not long to discover that major investors will take this opportunity to off load their holdings and the POO will come down to match the fundamentals and correction of S&P 15% plus is on the card.
I will repeat what I have said before, knowing a lot about the history between Saudi(Sunni) and Iran(Shia) , I believe there will be no agreement in June while proxy wars between them in Yemen,Iraq and Syria are continuing.

In short:
Demand for safe heaven, religious,cultural and life style will keep the price of gold going higher and the gains will be protected, because the dollar is likely to stay relatively subdued with the expectations of U.S. interest rate hikes being pushed out to the second half of this year or even more QEs and boy if negative interest rate is considered, then Gold should be $3000 to $5000.

My 5c worth for the day.

Cheers,

Sydney