While the headline speaks for itself, there are some nuances regarding gold’s rally to $3,508 that are worth noting.<\/p>\n
First, like the previous all-time high in April of this year, the movement occurred during Asian trading hours (02:48 London time) and not during London trading as we would have expected. Yes, markets have epicenters where liquidity converges, and it is in London that the gold price discovery process has traditionally been set\u2014the global benchmark. One wonders whether things remain that way. Certainly, gold settlement, clearing, and vaulting are London-centric… as are market standards and rules… but the weight of trading activity…??? Hmmm.<\/p>\n
Second, one senses that SILVER opened the door for gold. They have a strange relationship, those two metals\u2014like two elderly unmarried aunts\u2014no one really understands where the power resides. Silver, usually seen as a follower, has been reluctant during this bull run that began in earnest at the start of 2023. But gold, apparently keeping an eye on silver, has often failed to break through rising major levels if silver was not authenticating the move. Subsequently, one sensed they had simply diverged, but yesterday silver breached critical resistance at $40\u2014a 14-year high\u2014almost as if to say: “go ahead then gold, give it a try.”<\/p>\n
As London awakens… and wonders what just happened… I wonder where the center of gravity lies. Just like the strange push and pull between magnets, so it is for gold and silver… one influences the other… but we also see the same dynamic between East and West regarding the gold price. Gold has undergone a correction from its all-time highs as I write, almost as if it wanted to verify the reality that the West agrees… perhaps some nod to previous influence… and perhaps suggesting a lack of confidence in Asia’s newfound primacy?<\/p>\n
I think there are two lessons to be drawn from this… First, in price action there is meaning… it meticulously reflects the shifting balance of power… as between those aunts… and second, I think we can say that we are unequivocally in a completely new paradigm as far as bullion is concerned. Yes, we know, gold reflects the “sum of all fears” better than any other barometer… But perhaps it is also the signal of a changing of the guard? Too early to say.<\/p>\n
This has been the most extraordinary bull run in that it has been low participation as far as Western investors (institutional and retail) are concerned… a kind of stealthy rally… but seen from afar… well, Asians clearly have a very different perspective and their conviction is certainly much higher.<\/p>\n
Ross Norman<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" While the headline speaks for itself, there are some nuances regarding gold’s rally to $3,508 that are worth noting. First, like the previous all-time high in April of this year, the movement occurred during Asian trading hours (02:48 London time) and not during London trading as we would have expected. Yes, markets have epicenters where liquidity converges, and it is … Read More<\/a><\/p>\n","protected":false},"author":3,"featured_media":7106,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-senza-categoria"],"_links":{"self":[{"href":"https:\/\/www.investorofemet.it\/en\/wp-json\/wp\/v2\/posts\/7105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorofemet.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorofemet.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorofemet.it\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorofemet.it\/en\/wp-json\/wp\/v2\/comments?post=7105"}],"version-history":[{"count":0,"href":"https:\/\/www.investorofemet.it\/en\/wp-json\/wp\/v2\/posts\/7105\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.investorofemet.it\/en\/wp-json\/wp\/v2\/media\/7106"}],"wp:attachment":[{"href":"https:\/\/www.investorofemet.it\/en\/wp-json\/wp\/v2\/media?parent=7105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorofemet.it\/en\/wp-json\/wp\/v2\/categories?post=7105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorofemet.it\/en\/wp-json\/wp\/v2\/tags?post=7105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}