Continued surges in the gold price - what lies behind?
28 March 2024
Spot gold, intraday moves
Gold up again... The background macro/geopolitics are all supportive, so the rally is, on that basis, not too surprising although it is overbought. The intriguing element here is that on four consecutive days this week the first major move has happened during the hour before the London a.m. auction. Every-one on the dealer chats appears non-plussed, which means that some-one knows something... These moves do not reflect anything that could be attributed to the official sector (they're too canny and are long-term shadowy movers) and spoofing activity is very heavily policed. Sensible answer is that there may be an algo / algo's in play. Today's US numbers are neutral vis-a-vis gold with the exception of core PCE. On a very short-term basis the 50-minute / 200-minute averages and the 20D – 50D went through a Golden Cross within an hour of each other this afternoon (London time) and the latter coincided with the next bound higher.
The moves are also too sharp for this to be quarter-end asset rotation.. Please don't conflate it with Bitcoin. These are two very different asset classes, although some players do play one off against the other.
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