In what has become a trend going back to 2011, on June 26 some entity opened the market with a flash dump of 1.8 million ounces of paper gold contracts in an attempt to push the precious metal below its 100 and 200 day moving averages. And what is perhaps the most ironic about today’s artificial dump is that the mainstream media actually acknowledged it as manipulation.
Yet even with all of this, gold has remained resilient and has rebounded from multiple attempts to drive the price down below $1200 since the beginning of the year.
Because of gold’s resiliency, there is an even more interesting result that has emerged even with stock markets soaring to all-time highs, and bonds failing to respond in a logical manner to the Fed’s changing policy of raising rates.
And that is that gold is the best performing asset in this period since the central bank began raising interest rates back in December of 2015.
Source: The Daily Economist