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The USD priced POG can be manipulated easily by way of activities on the futures market where no physical gold changes hands.
To me the real signal comes from movements of the physical gold, like withdraws from or additions to the vaults, various vaults whose gold can be utilised by market players.
I am interested in withdraws in particular. Gold that have been withdrawn from registered vaults basically disappear into sticky hands and become unavailable for trading purpose. With the current structure operating a highly leveraged fractional reserve paper gold market, the withdraw/removal of real gold from the vaults/market place increases the leverage ratio of the whole gold market.
Today's GLD inventory report: 710.81tons, this is a decrease of 1.49tons: http://www.spdrgoldshares.com/
GLD inventory is probing new lows, the price of gold is not.
