So what's with the POG
The POG is moving in contradiction to the basic fundamentals that regularily influence its up and down movement currently. This is really happening because of the azz backward notion the Fed puts out that they are winning and will win the fight against inflation. The Fed speaking out of both sides of their mouths doesn't help much either but to obscure the hidden truth.
The mainstream investors en-masse, mutual funds and the like for the most part, haven't touched gold yet believing current Fed-speak narrative they'll win the inflation fight.
The reality yet to sink in is they won't win. The Fed can't win with government being the culprits most out to lunch. They spend while the Fed is pushed to monetize the growing debt creating more inflation.
Whose going to beat inflation while creating ever more inflation then trying to fight it at the same time.
At any rate , until the masses come around to logic and reason , the current reverse logic effect doing a number on the POG will endure.
The normal drivers of the POG won't trickle back to reality, being gold primarily bought as an inflation hedge to preserve wealth primarily against a tanking dollar, until the masses can see clearly with the blinders off.
Its the masses that drive the fundamentals normally driving the POG through sheer numbers, not the small army of shorts and swing traders playing with ill logic to make dime while the masses look the other way.
The normal drivers of the POG will return when the Fed loses credibility over inflation.
It really boils down to government spending.
Recently, currently, later this year and beyond, govt. spending has kicked up and will again spiral. The US dollar is a sitting duck domestically and on a global scale.
In the meantime, to the chagrin of longs, shorts and swing traders play the gold price mercilessly taking advantage of this temporary abnormal logic in reverse, and so, effecting these gold price swings as they appear to make up a significant portion of current buyers and sellers minus the greater mainstream at this time.
With the Fed's doctored inflation reality that the mainstream continues to gobble up - living by their every word - keeping them for the most part out of the gold buying sphere for now, news that normally would drive the POG up is doing the opposite. And news that would normally drive the POG down has been sending it soaring.
Wait until the masses get a clue and discover that inflation is here to stay and is going to get worse, in fact, much worse. They are the ones that can and will drive the POG to record new heights.
This aberration of reversed logic affecting gold pricing currently will soon enough return to its normal state.
And like gangbusters when the panic buying returns when the dollar nosedives.