With gold coming off the lows of an earlier plunge, today King World News interviewed Dan Norcini. Norcini told KWN the bounce occurred today because of “central bank buying.” Norcini also said, “Hedge funds are battling the Eastern Central banks which are the physical buyers.” He also sent over an extremely important chart which correlated gold in December 2008 vs today. But first, here is what Norcini had to say about the extraordinary volatility in the key markets: “The ratio spread trade, where the hedge funds had been buying bullion and shorting the mining shares, it looks like that’s in the process of being reversed. We’ve been seeing a steady improvement in the HUI (Gold Mining Index) to gold ratio over the last week, where the shares have actually gained ground vs the bullion.”
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