Gold – Protected, Suppressed, Depressed

For now nine weeks running, Gold’s weekly settle has neither exceeded 1191 on the downside, nor 1223 on the upside: that is a week-to-week closing range for two months spanning just 2.7% from low-to-high, or a mere 32 points. Think back to just 2016, a year which was peppered with trading days alone exceeding that range.

One might infer price is being “protected” from the downside, yet at the same time “suppressed“ from the upside. Either way, it flies in the face of the excited daily writings across the Gold-authoring spectrum with its perennial expectations of big Gold up moves to occur at any moment, the failure of which made manifest making one downright “depressed“.

You’ll recall a valued friend of ours here in Monaco having suggested that “Well, it’s dead money, isn’t it?” Upon that thought on occasion crossing our mind, the instinctive response remains “no, No, NO!” This present blip of quietude across Gold’s otherwise 5,000-year span as de facto money quickly assuages such suggestion. That noted, we at times wonder — given the go-go “nothing but stocks” nature of today’s generationally-turned-over drooling directors of money management — that they’ve merely passed over Gold as a critical wealth-preserving asset, and/or are sufficiently naive to understand the Gold ttory whatsoever. Indeed, it  was reported that in the past week investors poured resources into equity funds at the swiftest rate since March.

As for the ever-anticipated “big move”, be it Gold on the brink, or simple out of monetary sync, its weekly trading range has become sufficiently narrow as below portrayed from one year ago-to-date, the week just past spanning less than 20 points per the box (19.8), a dimension from which price has then tended to become more volatile, (direction notwithstanding):