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Both Gold futures market and the money index rose to new levels ever last week.
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Market analysts are likely to talk about the basics and the latest addresses, but nothing of this is at this stage.
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Central banks and investors from all over the world are interested in one thing. Only one thing: the price direction over time.
I was appointed to open this piece with the sentence, “After a while I wrote about the application of the market rules on the gold market …”, believing that it was two Shirin, perhaps three months. I passed accidentally via my archive, and after a few months I couldn’t find it, so Google “Darin News Parchart Gold Rules”. It appeared – from October 17, 2024. Almost a year has passed. I knew that time is accelerated with one age, but it is still amazed (amusing?) Nearly 12 months have passed. I took care of my attention, and re -read what I wrote at that time. As it turned out, I was ready to write the same thing this time about the calendar without realizing this, another defect to outperform 6-0 last summer. Taking into account, we hope to avoid a completely repeated psychological, I will take a different assistant.
In BARCART grains and grains, I had the opportunity to participate last July, I would like to ask the guest analyst a question by returning to the scene from the movie City Slickers when the cortex, the old, is a couly Curly (played by Jack Palance). So and the rest does not mean $#!+. “Of course, Mitch asks,” But what is “the only thing”? “Who smiles a curl,” This is what you have to discover. “My question for guest analysts was what is the key of corn, soybeans and wheat in the middle of summer?
As I told my friends in Kitco every Friday, one of the market rules dominates others these days with gold. Given this, we can say that the market has one golden base, and six others can play again. maybe. Here is how I see it in early September:
Rule No. 7: stock markets rise over time. Technical analysis tells us intermarkt that the US dollar is adverse moves, which are often simplified on the gold market. The dollar? I thought we were talking about stock indicators. Stay with me, for the rise and fall of the dollar, tends to move at interest rates, which move back to stock institutions in theory. Therefore, it is said that the rise in the gold market in the dollar/the weak indicates the high interest rates and the weakest stock markets, which leads to the move of gold and American in the same general direction. Although this is true in 2025, I do not see the two markets completely depend on each other, similar to when I talked about gold and wheat.
Rule No. 6: The basic win at the end. What are the basics of gold? We know that there is a strong demand from central banks around the world due to the chaos created by the global Autocrats. What we do not know is global supplies. (No. I am not talking about the fear of the US president in Fort Nox, who carries video books instead of gold. Or anything along this line.) While I say this rule is alpha and omega in my collection, I will take it out of the spotlight in gold. At least now.
Rule No. 5: It is what, not the reason. We continue to work near the heart of the gold market. However, in this case, we know what and why, and we do not need good people in the financial media that are our reasons. It comes to strong demand due to uncertainty, and the historical role of Gold as a safe haven market. The end of the story. Do the United States need a Fort audit you know? No more than the standard of any year under any American administration. Perhaps if the chaos is not the rule today, the demand may not be strong. Something to think about it.
Rule No. 4 A: A market cannot decrease. A strong case can be presented to the 4A rule, but at the present time, this base is given a silver medal instead of gold. It is true that gold appears to be in a position in which it cannot decrease, but I usually indicate a market with unknown support, and the invisible hand if you will, and we know who buys and for a reason. As I said above: Central banks from all over the world as a safe haven against chaos. Therefore, the constant gold gathering is not a great mystery.
Rule No. 3: Use filts to manage risk. It is safe to say that we can put this rule aside at the present time. The three filters that I usually operate the markets through – seasonal distribution and fluctuations – mainly meaningless. Global Chaos does not know any seasonal tendencies, and the market that makes its highest levels almost all times every week makes the price distribution a point of discussion. As for fluctuations, investment and central banks will continue to buy gold regardless of the potential negative risks, including the increasing implicit fluctuations in the market since mid -August.
Rule No. 2: Let the market dictate our actions. This is related to what I see as a golden rule of gold these days-and the removal process, I am sure that you see where I go-but our readings on the real basics do not necessarily reflect the global situation and frankly it has no effect on long-term situations. At some point (the difference between the money index (GCY00) and the futures contracts (GCZ25)), futures for market futures can return forward. But it will be some time. In fact, this raises an uncomfortable question, which I must deal with regarding future differences and future curves in other markets. (More about this later.)
Rule No. 1: Do not get intersections with the direction. This is the golden base of gold. When I was sent to Kitco last Friday as part of its weekly survey of market analysts, “Up (gold trend next week). It would be stupid to think otherwise …”. Gold will continue in the direction higher until it has a reason for the high direction. Or, as Newton’s first proposal law applies to the markets, “a market will remain in this direction to act with external force.” What is the external power that will start selling gold? Central banks? Unlikely. Long -term investment interests? Perhaps not, although “getting a small profit” from time to time they enjoy the most wisdom men “[i].
Could the market be of the importance of gold in a simplicity like the next direction (the price direction over time)? Yes. It is one thing. Only one thing.
[i] Additional points if you know where the idea of this quote comes from.
On the date of publishing, Darren New (either directly or indirectly) did not have positions in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com
