Gold and Silver: Is Recent Rally Cause for Concern? | Metals Mine

  • Gold and Silver: Is Recent Rally Cause for Concern?

    From sunshineprofits.com

    Does gold’s most recent rally and the inflow of capital into silver change the fundamental outlook of the PMs? If so, what about equities? In short, yes, the U.S. dollar is down, thereby boosting gold. Yes, the recent massive interest in silver has everyone talking about getting in on the action. However, one must remember that markets don’t move in a straight line and countertrend rallies are expected along the way. Keep your eye on the ball. Now, let’s examine what exactly is happening. Gold moved higher once again yesterday (Feb. 9), but it reversed and declined before the closing bell. Miners declined as ... (full story)

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Trader#6A92
Feb 11, 2021 3:06am
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History is a very undependable source of information (in terms of judging future outcomes). And if that is all you got, no matter the seeming aptness of judgement based on it, that judgement must be taken with a pinch (and with markets a lot more) of salt. The strength of a move is determined at base (or inception) since rarely is it possible to be clear about the makeup of the moves drivers beyond that point. Hence the importance of the economic theory of market clearing. Prices turn when there is no further order match in range or proximate enough to sustain direction. It is a microstructure thing and no amount of speculative analysis takes us beyond that fact. The question we both are trying to address is, "therefore, has Gold reached amplitude up?" My sense, based on the dynamics and implications of market clearing and the underpinning aperiodic cyclicality of markets (chaos), is that Gold remains strong up and until circa 1955. I will not go into more justification since I do not have the space allowance you have. But elsewhere on this site (many places in fact) I have pieced together what justifies such thinking - premised as it were on the inalienable facts of market clearing (i.e., the economics of price fluctuation) and the inherent properties of aperiodic cyclicality or chaos that defines the mechanics of price behaviour (and thus what we read on charts about price movements in real-time as opposed to history). But we shall see what the future holds soon enough since what separates our positions is simply for you (price is trading <1855) and for me (that is temporary and 1855 will be displaced higher and well exceeded near-term).

The Crow (-_-)
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