At the opening of the commodity market, gold has been under a major attack.
In 2015, I told you about a violent downward opening (1050 USD per ounce) and then confirmed the increase to come when the price was still at 1300 (https://www.crottaz-finance.ch/blog/cest-parti-goldy-cest-reparti-goldy/)
What happened this morning very strongly looks like a “cleaning” of stop losses and “weak hands”.
Another positive argument that militates for gold (and incidentally silver) is that real rates are diving
Money savers are super stuck between negative return on their accounts and inflation coming out of the woods.
I found some very interesting comments from specialists such as:
“Classic Sunday night attack (period of low liquidity) by massively indebted futures traders. Pure manipulation intended to try to push the real owners of physical gold. These futures traders do not have physical gold – just paper“
“Tonight’s NY gold futures crash is a FED tool to control inflation expectations. The rest of the world can now choose to buy negatively yielded U.S. Treasury bills or reduced-priced physical gold”
We can see that Switzerland is exporting more and more gold to China in particular.
Some central banks are buying and this is physical!
India has already accumulated 36 tonnes since the beginning of the year.
In summary, I think it’s a good signal for bullish people on gold.
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