Gold Bulls Ride Supply Squeeze Amid Central Bank Tightening

Bullion investors face a market pulled in two directions: a physical supply chain that cannot quickly respond to price signals, and a financialized demand base expanding at a record pace.

Gold settled last week at $4,382.82 an ounce, representing a 20% annual gain and sitting roughly 22% below its 52-week peak of $5,598.58 reached in January.

The global supply of physical gold is unlikely to loosen on the near-term horizon due to chronic inelasticity and pipeline lag.