1, Gold is LOWER than it was in January and not higher.
When you are talking about inflows/ outflows, you are talking "multi-year" and when you are talking about price, you are comparing to past 2 months. Gold has barely budged in price. Do you understand?
2, When GLD shares are sold they have to sell physical bullion I believe,
"sell physical bullion" to whom? Doesn't it mean someone else is buying? If someone is buying, then what is the problem of "nobody buying Gold" here?
Conclusion is that the inflow/outflow factor has a lot to do with price action.
Finally, let the price do the talking and we do the trading, each one of us using the tools that serve/help him best.
-tria
You "concluded" but like I demonstrated again, it is an invalid argument.
The GLD outflows tool place during the last 2-3 months and the price cash of Gold has declined accordingly. The tonnage held by the GLD ETF dropped to multi-year lows, I don't have the exact figure since it is not a timming tool but just an observation od the prevailing bearish atmosphere now. The buyers were physical buyers as the price was dropping
The mass exodus out of paper gold has held the 13DEMA at 0% since February 28th. This is the lowest reading since the inception of the gold ETF and gives new meaning to an old phrase "get me out at whatever the cost."
Chart: London PM Fixed Gold and GLD (ETF) Total Assets WA Stochastic Exponential Moving Average (13DEMA)
http://3.bp.blogspot...00/GOLD TA3.PNG
Click on the chart to enlarge
I am not bullish or bearish, unlike you I am a trader in Gold for the past 37 years and looking for a rebound at least.
I believe we are in a trading range till proven otherwise.
If I am wrong I have my stops at much much higher levels than yours.
If I have presented to you an invalid argument Sir, so be it, kindly forget about it.
Have a nice weekend,
-tria