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The World Gold Council has just released 4Q 2016 Supply and Demand data...
... What is plain is that during 2016 suppliers produced 321 tonnes more than buyers wanted.
http://www.gold.org/supply-and-demand/gold-demand-trends
Give that this surplus is absorbed by the financial markets (mainly bullion banks), why isn't the price of gold going down?
My question ignores market sentiment, and it might be helpful to reframe the question. We should be asking: given the perceived risks that the global financial markets are absorbing at the moment (particularly in the last quarter of 2016 with the election of Donald Trump), why isn't the price of gold rising faster?
I think that the WGC statistics answer that question.
