How Gold Could Unfold In The Near Future.

13 Nov 2024

The drop from highs comes after an extreme rally for over a year.

Often, with most Markets when you have one period of extreme, Markets eventually unfold and develop into the next phase or trend, which is sentiment driven.

In this case, Gold essentially de-pegged from its classic and traditional safe haven stance to become a free spirit. Sentiment case came from a lot of Chinese demand and was propelled by risk on via FED rates coming down.

Now, we can see that Gold particularly is being driven by a lessening of safe haven asset holdings and more inflows into assets like the USD on hopes of economic improvement post election.

This sentiment case is alike to other ones. If you look post financial crisis, as the world recovers traders start to take on more risk and move out of safe haven assets.

There has not been a crisis so far as such, but the same effect is still occurring now. I would not be surprised if this trend continues.

Levels for Re-longs noted. Starting light on first, getting heavier as we fall. Any pushes back towards highs and I will re-short.

14 Nov 2024

Catatan

Taken a light long on level 1. Would exit shorts if you held.

19 Nov 2024

Catatan

Kill longs taken on long level 1, as above. Re-shorts appropriate lightly.