Gold Does Not Move in a Straight Line | David Rosenberg #gold #news #kitconews

Central banks are the primary driver of gold demand, expanding holdings ~2–2.5% annually while available supply grows ~1%, creating a structural deficit that should push gold higher over time. Price action will include frequent corrections, which are buying opportunities within a secular bull market.

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David Rosenberg 7.5

Gold Does Not Move in a Straight Line | David Rosenberg #gold #news #kitconews

Gold; XAU

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Those supply demand curves over time are going to lead to a higher gold price

David Rosenberg

This is like the 12th correction in gold since the bull market began. The World Gold Council just put out its report last week that the central banks in the survey say they're going to continue to expand their gold holdings.

For the past decade, the driver of demand is expanding call it two to two and a half percent per year, and that's been driven by what the central banks are doing.
David Rosenberg

The available supply is easier to model and that's expanding 1% and the demand from the central banks is running two to two and a half percent.

You don't have to be the world's rocket scientist economist to know that those supply demand curves over time are going to lead to a higher gold price, but it doesn't move in a straight line.
David Rosenberg

What corrections do in the context of a secular bull market is they provide an opportunity for people that didn't get in previously to get back in at better levels.

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