@Calamity, Gold rose because of uncertainty and it is considered safe haven commodity just like CHF and JPY. It was predicted that GOLD retest lower levels before going up but instead it went up, why? uncertainty prevailed. Now the N.Korea has backed off, also DXY is at multi month low, it is making a corrective wave to the upside that means GOLD is making corrective wave to the down side (Y) I did not want to write this long lol but i thought it could be helpful regarding fundamentals.
Jamie-Dimon
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@HumairDawood,
no, this has nothing to do with North Korea or any other geopolitical issue. The current decline of gold is solely related to the typical pump-and-dump game of the bullion banks. The recent rise was not caused by increased physical buying, it was just driven by the paper markets. The bullion banks, which are backed by the central banks, fully control this market. Basically, they are always net short. Once they have lured enough buyers inro long positions and the open interest has been "maxed out" they unleash hell, typically leading to a drop of 100 to 120US$. The decline might be somewhat more shallow thsi time, but i expect gold to drop into a range of 1280 to 1320. Then the game will restart again.