When there is no more gold left in London to export the gold price is likely to go higher on strong global demand induced by economic headwind. At the time of writing the spot gold price is $1,251.80 per ounce, up 18 % year to date, while the S&P 500 is down 9 % year to date. Is the gold price rising because of physical supply shortages?

As long as London is selling gold and China is buying the price can go down. However, if London stops selling (or becomes a buyer) the price can make a reversal. Possibly, we’re reaching the end of the London Bullion Market floating supply suggesting the price of gold is escalating on physical shortages.