Think you know why gold did what it did today? Gold is a manipulated market. Now there’s an understatement for you. I have been investing in precious metals, directly and indirectly, for over 50 years. And for a long time now I have been keeping my own counsel and ignoring almost everything I hear out there relating to gold’s performance and its prospects.
No matter where the price of gold goes on any given day there are always ready reasons put forth to explain its move. Today for example, it's amazing the varying reasons that are being put forth to explain gold’s move down, some of them totally contradictory. It dropped just because a Federal Reserve meeting is coming up, it dropped “as hopes of progress in peace talks between Russia and Ukraine coupled with the likelihood of a U.S. interest rate hike dented demand for the safe-haven asset,” it dropped because of optimism regarding the success of peace talks, it dropped because recent surges in commodities were threatening “a combination of low growth and high inflation,” it dropped because gold was caught up in a drop of other commodities, it dropped as a response to a yields surge in front of the Fed meeting - and on and on you go.
In other words nobody has a clue as to why gold did what it did today - or what it will do tomorrow. It’s a manipulated market out there and the moves in gold are wholly irrational. And to make things even worse, the price of gold is often determined by the outcomes of various groups of disparate manipulators fighting it out! Shear chaos.