Gold price fluctuations, who is really setting the price? Peifengke: Supply is almost irrelevant. [Peifengke Master Class 2.1]

Exciting Content Preview

Gold prices are, for the most part, not understood through supply.

We rarely hear a seasoned trader say, “I’m going to short gold because supply has increased this year.”

The reason is simple—gold is not a typical “supply-driven” commodity, but an asset where stock far exceeds flow.

What truly affects the price is the marginal pricing of the few thousand tons of new flow that year; and this marginal price will, in turn, determine the value of the entire large stock.

It is more like real estate. In a neighborhood with 50 houses, the price is not determined by those 50 houses, but by what price the buyers and sellers are willing to transact at that moment.

Gold follows the same logic, but what is truly worth pondering is:

In the same macro environment, why do some funds continue to allocate, while others are engaged in repeated trading?

Why can central banks “only buy and not sell,” while institutional funds frequently enter and exit?

As ETF thresholds continue to lower and more retail investors begin to participate, will this pricing mechanism dominated by “marginal funds” change?

In this section, “Pei Feng Ke · Chen Da Peng” will guide you to dissect: the true pricing forces behind gold prices, and the real game among different funds at the same price.

Click here or on the course schedule below to unlock the full course↓