Gold: Despite the inflows into ETFs we discussed yesterday, #gold declined during US trading on Wednesday, settling around $1310/oz.

It's remained under light pressure today and is currently just above$1308/oz.

(Short thread) https://t.co/DKSDL47wQ8

Gold: ETFs weren't to blame for this move - in fact ETFS saw (small) inflows yesterday, marking the sixth successive day of additions.

2/6 https://t.co/rz6u4NlNgU

Gold: The dollar was a little strong during US hours on Wednesday, although only at levels seen earlier in the day, so that probably wasn't behind the softness in gold.

3/6 https://t.co/xNrhB6Mamv

Gold: Real Rates, although choppy, didn't moved sharply and sustainably higher on Wednesday either.

So what do we think is behind gold's modest, 0.5% decline on Wednesday?

4/6 https://t.co/vS3SIGLmn2

Gold: The answer is palladium (perhaps), with this illiquid, industrial but still-precious metal slumping by more than $100/oz on Wednesday, and weak again this morning.

5/6 https://t.co/tTJSfCsdBH

Gold: We are not experts on the palladium market, but there was no obvious (auto) catalyst behind the move that we can see.

Aside from gravity, after what has been a remarkable run, we suspect some fund profit taking may have occurred. More volatility looks inevitable.

Ends https://t.co/lPUkTYteE1