Gold is likely to grind higher even after the latest hawkish message from The Fed...

Almost every government action reduces risk for some group and repackages the risk and forces another group to bear it...

"while many investors were largely disengaged only a few weeks ago, the recent price action appears to have captured broader market attention."

Once treated as the dollar’s mortal enemy after 1971, gold may now be Washington’s only remaining fiscal escape hatch as debt, hidden QE, and a weaker greenback force a historic revaluation...

"We’re comfortable holding length due to dollar pressure ("release valve"), gradual Central Bank re-engagement, and strong Chinese imports. Franchise flow picked up significantly this week, combination of 3-6m digis and outright buying targeting between 4800 – 5500"

There is no longer a clean "we don’t know who the legitimate government is" excuse...

The reasons for owning gold therefore have not changed, and demand is beginning to reflect that. Expect price to follow...

Managed Money gross longs were probably a key driver of the recent spike...

The bond market is indeed everything, and what it is telling you far more honestly than the Fed or BoJ is that your fiat money is consistently losing absolute purchasing power in plain sight...

...official demand for gold has now risen to a new record of USD 45 bn in the second quarter.

Central banks were the only major buyer to increase bullion holdings in the second quarter from the prior period...

China is building a financial neighborhood in which physical gold is easier to store, trade and use – while reducing reliance on institutions and payment systems outside its control...

When confidence erodes, collateral suddenly matters again...

The prospect of swelling sovereign bond issuance is also reviving its appeal as a hedge against the risk that governments will inflate away their debt burdens...

...rock beats paper!

In May, central bank bought a whopping 81 tonnes of gold, with China the largest identifiable buyer at 48 tonnes, which was the biggest monthly total in over a year.

...the question of “sound money” was never purely academic in nature but has always been of central importance for economic stability and social order...

...nothing has changed about why they buy.

"Gold’s break below key technical support of 4050 to the 4023 low in New York trading appeared driven primarily by stop-loss liquidation and positioning rather than a material deterioration in macro fundamentals" - UBS

The gold market is showing signs of capitulatory selling as the last shorter-term traders exit, paving the way for a more stable rally...