Gold’s Calm Before the Storm?

The price of gold held steady near $4,002 per troy ounce as the week concluded, presenting a facade of market tranquility. However, this surface-level calm belies a significant underlying struggle, with two powerful market forces currently vying for dominance over the precious metal’s trajectory.

A notable headwind is emerging from the investment community. Following a robust rally that peaked in mid-October, retail investors have significantly scaled back their participation. This pullback is evident in both the declining sales of physical gold bars and a noticeable reduction in inflows into gold-backed exchange-traded funds (ETFs). More concerning for the bullion’s prospects is the behavior of institutional players, who are unwinding their Read more...