Gold volatility is adding to trading opportunities

Looking around at all of the indicators and the recent performance of markets we can see that they are transitioning from the extended bear period in 2023, when the majority of people just wanted to exit equities. The worm is turning on the inflationary outlook and investors are setting themselves for the recovery market with cautious optimism being evident. No-one rings the bell at the top or the bottom of the market, but the signs suggest we are on the mend.

The gold price went on a tear on Monday, surging above US$2,100/oz for a brief period. Understandably, that led to some profit taking and a quick fall. No doubt you will be wondering if this was a blow-out high, or just an indication that the traders are becoming more active. The reality is that the percentage movements have been modest when compared with every other commodity, so a correction doesn’t mean change on outlook. There continues to be much more substance in the gold story than all of the EV input materials. No-one really has a firm grip on the outlook or prices for what are essentially concept products. 

 WeeklyComm9Dec2023.pdf