Financial Times/Henry Sanderson/10-9-2016
“One notable fact about last Tuesday’s sell-off was that it was not because of liquidation in ETFs, holdings of which have remained steady, and even rose slightly last week. ‘The drivers of strong physical ETF and bar demand for gold during 2016 are likely to remain intact, including continued strong physical demand for gold as a strategic hedge, limiting any downside,’ Goldman Sachs says.”
MK note: Sanderson verifies physical liquidations not reason for gold’s sell-off last week. Last week’s drop was a paper bomb dropped on the market probably for the reasons we outlined last week, i.e., ancillary margin-driven bank and fund dumping in association with the collapse of pound sterling. Goldman Sachs calls “the retreat in gold a buying opportunity.”
