Update: Gold Rebounds from a Three-Month Low Despite a Higher Dollar

Dollar strength pushing gold to three-month lows is textbook accumulation territory. The paper markets are doing what they do - creating volatility while the fundamentals remain rock solid. Central banks added another 60 tons in October according to the latest World Gold Council data. COMEX registered gold sits near multi-year lows at 8.09 million ounces. Meanwhile, premiums on physical coins and bars haven't budged much from these paper price swings. Smart money knows the difference between price discovery and actual metal availability. Every selloff in the futures market is another chance to convert fiat into real money at a discount.