You'd think that an institution charged with promoting the gold industry would produce reports that at least cast the best light on gold's prospects. You'd think wrong, if you're thinking about the World Gold Council. They've been negative on gold for, oh, the last 14 years or so. Today they issued a report that contained a nugget about Chinese business using physical gold as collateral for bank credit ($40 bn worth) but they managed to tease a gloomy forecast even out of this inventive monetary use. That and bad economic news out of China appeared to be the catalyst for gold's drop today.
But when the drop is ready, the cause appears. That fall was likely already in the market, and the report, plus jitters over the first anniversary of the April Massacre in gold and silver last year, furnished an excuse. I had been thinking that the gold price had possibly completed a three leg (A-B-C) correction, but clearly another leg remains. That began today.