Swing traders and shortsare the ones playing with the POG currently. Countries accumulating gold, buying then pausing have contributed to the effect on the POG as well.
Buying and selling in reverse logic to what the Fed says and does while the masses have stayed out of the buying proccess and haven't begun to buy yet, has been driving gold up and down to where whatever and whenever it looks like a big run could be up and coming but then it dies in its tracks.
Why the backward reasoning.in this buying logic?
The latest CPI came out cooler than the previous month. Logic has it with a lower inflation number, gold would sell off. Instead it rallied to 52 week high levels.
Now its selling off as weak manufacturing and sales numbers were released which logically should have been bullish for gold, simply because the Fed may not hike rates further on that news and inflation would be rising.
Reverse logic in play contrary to the conventional drivers of gold makes little sense , but it does to the swing trade and short players making dime before the masses get a clue.
These early bird players in the gold buying/selling market take advantage wherever/whenever they can knowing the masses are held at bay standing back from buying right now.
Those very masses holding off that will change on a dime in what will become a real panic buying mode later . Holding off currently due entirely to being transfixed on the bogus Fed narrative that inflation is being licked.
It isn't licked and it won't be.
The masses are still locked into the high hope that the Fed will win its inflation battle.
They can't , not without government wittling away some more at the criterion that defines the already rigged CPI.
They've got a vastly manipulated CPI now showing inflation that has stripped out food energy and now housing costs with nothing left to omit or skew the numbers already rigged to the max any further.
The Government and Fed can kick the can brimming with their own ineptitude down the road only so far , and then there's no more road.
Its getting to the end of the road where the Fed can keep kicking that can.
When they reach it, they will awaken the catalyst that will send gold toward $3000US and higher.
That being, the pouring in of panicked mainstream retail buyers.
The trigger: When the Fed loses all credibility that they can slay the inflation beast. That time is coming.
Inflation is not going anywhere and is here to stay. It is going to get worse than its been .
The drivers of inflation that won't quit or be manipulated away any further are numerous and building.
They're going to culminate in a devaluing dollar. The extent could be massive devaluation.
Its then, with this lost faith in the Fed that a more conventional logic will reverse to drive the POG.
And its the masses who can and will keep the price of gold rising to any sustained degree.
Its when the panic buying to offset a falling dollar in the face of runaway inflation hits hard.