Gold ETF Flows Show Capitulation

By Callum Thomas

Gold is under fire, and you can see it in the flows that investors are starting to capitulate.  Facing headwinds of a stronger US dollar, and rising real yields, gold has broken down through its short term uptrend line (which came after failing to break through resistance).  With futures positioning stretched to the downside and ETF outflows accelerating gold really is at a critical point here – it could easily bounce short term, but it could likewise spiral down.  I’ve previously mentioned that gold could easily go to $1000, particularly with the reversal of quantitative easing, and once the flows get going, price could end up going further and faster than you expect.  So as I’ve been telling clients, gold may not be the hedge you think it is…

 

Looking for deeper insights?  Try taking a free trial of our institutional research service.

Support 100% ad-free Biiwii.com by making a donation of your choice!

Or better yet, subscribe to NFTRH Premium for an in-depth weekly market report, interim updates and NFTRH+ chart and trade ideas to get even more bang for your buck. You can also keep up to date with plenty of actionable public content at NFTRH.com by using the email form on the right sidebar. Or follow via Twitter @BiiwiiNFTRH, StockTwits or RSS. Also check out the quality market writers at Biiwii.com.

Published by

Gary

NFTRH.com & Biiwii.com