Gold....

C_Mababejive

Is there any way of knowing or any data analysis to indicate how much of the current gold price is related to the increase in the money supply, how much is due to demand and how much is due to the covid crisis/economic situation? I dont know but i wonder if most of the gold price is due to increased money supply?

I was considering buying some brittanias for the lowest margin possible rather than an ETF.

Thanks

maxsteam

C_Mababejive said:

Is there any way of knowing ...

No. The price is determined by market sentiment about the news rather than the news itself. If enough people believe that, for example, the unblocking of the Suez canal will make people want to sell gold, then people will sell gold because of this belief and not because of the (largely irrelevant) unblocking. There is a lot of hype and there are a lot of inexperienced investors in the gold market so there is often no logic in the price movements.

HansOndabush

The price of gold is very correlated to expected inflation less return on bonds I.e. to the real return on bonds. Due to massive QE, there is a lot of inflation expectation, however 10 yr US treasury bond yields have also risen sharply which has dampened the demand for gold.
Other than the above, any unexpected news like a war can send the gold price higher due to fear of collapse in other asset classes.

Thrugelmir

You do realise that gold is priced in US $.