Gold as a store of value has become neutered by the strength either perceived or otherwise in the U.K., E.U., Japan , U.S.
The following synopsis was written by my colleague John Thorpe, an ex floor trader with many years of experience in the commodities world and provides a useful, quick insight into gold fundamentals today:
Exposed hedged, inflation deflation, fear assurance, fiat vs tangible, historical context, cultural requirements.
Gold as a store of value has become neutered by the strength either perceived or otherwise in the U.K., E.U., Japan, U.S. as evidenced by improving stability in labor markets and low inflationary pressures.
Economic stability, more than anything, is a function of confidence and confidence can evaporate in an instant.
Keynesian, Neo - Keynesian, Austrian theory. It all doesn't matter at the moment to the value of gold in the short run. The fact is CPI in September was running at n annual rate of 1.7 percent.
Not so long ago gold prices began a historic rally as loose credit fueled a monumental bust, Gold was soon to follow.
So why, if the E.C.B. In its official statement last week indicated that it would aim to increase its balance sheet by €1 trillion by 2016?
So why, if Abenomics's Policy to print a Tsunami of Yen to inflate the Japanese economy out of a deflationary swoon that has lasted 25 years? Have The BOJ governor announced that it will expand its monetary stimulus by stepping up asset purchases. Haruhiko Kuroda warned that the country is at a 'critical moment' in its fight to get out of deflation. He also said this is "Bank of Japan's unwavering determination to exit deflation". So why have these underlying fiat currency themes not created another tangible asset bubble? Gold prices rise for a hopeful trading day or two on any announcement of zero interest rate policy objectives and in fact gold continue its price decline. Central banks are trying to inflate to prevent the debilitating effects of a downward deflationary spiral and they are having a rough go of it.
Not so long ago gold prices began a historic rally as loose credit fueled a monumental bust, Gold was soon to follow. China's economy is currently transitional as it moves to consumerism and away from manufacturing.
Loose credit isn't fueling much of anything right now.
Gold Weekly Chart:
As far as the chart, I am sharing a weekly gold chart for your review. What I am noticing is lower highs and lower lows. I included some Fibonacci extensions along with possible targets to the downside as well as possible resistance points on the upside. At this point from a longer term perspective, I still like selling the rallies in gold as I see the path of less resistance downwards.
Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains - this one is not different. If you need help creating a trading plan, visit our broker assist services.
Disclaimer - Trading Futures, Options on Futures, and retail off-Exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
About Ilan Levy-Mayer
Ilan Levy-Mayer has been a commodities broker for over 16 years, and holds an MBA in Finance and Marketing from Hebrew University in Jerusalem. Ilan is currently the Vice President and a Senior Futures Broker overseeing online future trading platforms and Commodity Futures Trading systems at Cannon Trading Company.
The following synopsis was written by my colleague John Thorpe, an ex floor trader with many years of experience in the commodities world and provides a useful, quick insight into gold fundamentals today:
Exposed hedged, inflation deflation, fear assurance, fiat vs tangible, historical context, cultural requirements.
Gold as a store of value has become neutered by the strength either perceived or otherwise in the U.K., E.U., Japan, U.S. as evidenced by improving stability in labor markets and low inflationary pressures.
Economic stability, more than anything, is a function of confidence and confidence can evaporate in an instant.
Keynesian, Neo - Keynesian, Austrian theory. It all doesn't matter at the moment to the value of gold in the short run. The fact is CPI in September was running at n annual rate of 1.7 percent.
Not so long ago gold prices began a historic rally as loose credit fueled a monumental bust, Gold was soon to follow.
So why, if the E.C.B. In its official statement last week indicated that it would aim to increase its balance sheet by €1 trillion by 2016?
So why, if Abenomics's Policy to print a Tsunami of Yen to inflate the Japanese economy out of a deflationary swoon that has lasted 25 years? Have The BOJ governor announced that it will expand its monetary stimulus by stepping up asset purchases. Haruhiko Kuroda warned that the country is at a 'critical moment' in its fight to get out of deflation. He also said this is "Bank of Japan's unwavering determination to exit deflation". So why have these underlying fiat currency themes not created another tangible asset bubble? Gold prices rise for a hopeful trading day or two on any announcement of zero interest rate policy objectives and in fact gold continue its price decline. Central banks are trying to inflate to prevent the debilitating effects of a downward deflationary spiral and they are having a rough go of it.
Not so long ago gold prices began a historic rally as loose credit fueled a monumental bust, Gold was soon to follow. China's economy is currently transitional as it moves to consumerism and away from manufacturing.
Loose credit isn't fueling much of anything right now.
Gold Weekly Chart:
As far as the chart, I am sharing a weekly gold chart for your review. What I am noticing is lower highs and lower lows. I included some Fibonacci extensions along with possible targets to the downside as well as possible resistance points on the upside. At this point from a longer term perspective, I still like selling the rallies in gold as I see the path of less resistance downwards.
Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains - this one is not different. If you need help creating a trading plan, visit our broker assist services.
Disclaimer - Trading Futures, Options on Futures, and retail off-Exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
About Ilan Levy-Mayer
Ilan Levy-Mayer has been a commodities broker for over 16 years, and holds an MBA in Finance and Marketing from Hebrew University in Jerusalem. Ilan is currently the Vice President and a Senior Futures Broker overseeing online future trading platforms and Commodity Futures Trading systems at Cannon Trading Company.
Ilan Levy-Mayer has been a commodities broker for over 15 years, and holds an MBA in Finance and Marketing from Hebrew University in Jerusalem. Ilan is currently the Vice President and a Senior Broker at Cannon Trading Company . He is also a CTA of Levex Capital Management and his daily blog was voted the #1 Futures Blog from Trader's Planet.His experience in the industry dates from the beginning of online trading, and he has also developed several trading systems over the years. In addition, Ilan has written several articles about trading methods and trading psychology, and has been quoted and published several times in SFO magazine, Futures, and Bloomberg. Ilan Levy-Mayer has been a commodities broker for over 15 years, and holds an MBA in Finance and Marketing from Hebrew University in Jerusalem. Ilan is currently the Vice President and a Senior Broker at Cannon Trading Company . He is also a CTA of Levex Capital Management and his daily blog was voted the #1 Futures Blog from Trader's Planet.His experience in the industry dates from the beginning of online trading, and he has also developed several trading systems over the years. In addition, Ilan has written several articles about trading methods and trading psychology, and has been quoted and published several times in SFO magazine, Futures, and Bloomberg.
Former Marketing Director of XTB Becomes NCM Financial’s COO
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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