Latest Gold Moves Explained With Inflation

Very well joined up reasoning and logic. But 2 points come to mind a) the idea presented is underpinned by normative economics and as such a mere conjecture (so may not be at all correct, i.e. whatever correlations seen now could unravel in a short space of time - just like the others Georgia, inflation risk, etc). b) Traders and analysts are a stubborn lot and appear unprepared to accept that it is possible for Gold to be falling at this point given the near parabolic uprisings they saw of the metal last year (especially with the price jump on new year open). Without going into the actual geometry of it, please look at the MN chart and review the 1920 peak and the 8 months following that historical high. Then look at 2074 another historical peak just last year and compare the pattern of bars in the months since. Does not take any expertise in fractal geometry to see the similarity in the pattern of bars between that high and the previous historical high 1920. Traders might have to accept that mean-reversion pattern for this year because clearly things are not as linear or simple as we would like with cyclical systems especially markets where we actually have aperiodic cyclicality or chaos.

The Crow (-_-)