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Axel Merk addresses whether the recent volatility in gold is typical, referencing a Bloomberg Radio guest who disagrees with that view.
Merk explains that gold tends to cycle between periods of volatility similar to the S&P index and stretches of significant calm. He cautions against assuming that low volatility is the norm during such phases.
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Merk previously observed a surge in gold prices following the Treasury Twist announcement. He also reported that ECB President Christine Lagarde described the bank’s 500 million euro FX intervention as minor. These commentary points provide context to Merk’s ongoing tracking of central bank actions and market reactions.