This Gold Rally Is Suspicious

Independent analyst • Jan 10, 2017 at 3:29 PM EST

Since middle December 2016 gold prices have been going up nicely.

Since middle December 2016 gold prices have been going up nicely:

However, this picture is still not supported by gold flows reported by GLD:

source: Simple Digressions and GLD data

For example, yesterday as many as 276 thousand ounces of gold left GLD vaults. Simply put, the American investors are not buying this rally (more - they are selling) and since December 15, 2016 (when the current rally had started) they decreased their holdings by 1.4M ounces. In my opinion, it is quite a large figure.

That is why I have serious doubts about this rally...

This article is not an investment advice. I am not a registered investment advisor. Under no circumstances should any content from here be used or interpreted as a recommendation for any investment or trading approach to the markets. Trading and investing can be hazardous to your wealth. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor. This is strictly for educational purposes only.