The Gold Dip: Macro vs Shorts and Retail

The bull market in gold is being driven by many forces, and it isn’t just speculative fervor that caused the latest drop. Macro factors like monetary expansion, interest rates that are still far too low, broad global uncertainty, and de-dollarization are going to push gold higher.

In the meantime, corrections will occur, but this isn’t the Hunt Brothers all over again. Short sellers are a major factor,and could have even coordinated with big banks and the Trump administration. 

As Peter Schiff said on The Friday Gold Wrap:

“If you look at what happened, the huge drop in the price of gold and silver in just a few minutes is the result of a huge sell order hitting the futures market randomly. Now, if you had a lot of silver or gold that you wanted to sell, would you just dump it on the market all at once, or would you try to slowly get out without impacting the price?”