Gold Downturn: Why Strong Fundamentals Are Not Everything | Metals Mine

  • Gold Downturn: Why Strong Fundamentals Are Not Everything

    From sunshineprofits.com

    So much money printed. Excessive debt. Even pandemic! And gold failed to hold gains. But that’s how markets work, no matter what gold permabulls say. Gold plunged yesterday, just as it was likely to. The fake reason? U.S. retail sales exceeded expectations. The real reason? A major downtrend. On the above gold chart, I added annotations that show what happened in the previous 3 cases after the retail sales reports. We saw the following: • gold declined after retail sales disappointed in June • gold topped after retail sales outperformed in July • gold paused its rally after retail sales disappointed in August ... (full story)

Comment Options
Trader#15BC
Sep 19, 2021 7:33am
Permalink
Actually, they are nothing at all but mere coincidence when they agree with the direction of markets (hoping on one leg a number of times before deciding what direction to enter may be as effect). This is because the market is not an economic laboratory --------> it is a market, which means it is defined by and exists strictly for the exchange of value. What you call "fundamentals" therefore, can in no sense drive the market given it is and always will be a part of the value construction in only the minds of only a proportion of participants at any given time and even at that never a homogenous definition even within that proportion. This is why the market has a fractal pattern (fractured pattern if you like) and it is that pattern and that pattern alone that is truly fundamental to markets. The other "fundamentals" is no more than a hopeful guess (and almost always a poor guess from the reasoning provided here). Happy trading.

The Crow (-_-)
Reply
  • Story Stats