Why Is The Price of Gold Moving?
If you think…that I or anyone else really know why the price of gold is moving…you will need to find another article. Guess what…everyone has opinions..The fact however is that the price is going up…and that is why virtually every trend follower …every commodity trading advisor has purchased gold. It is as simple as we are following the trend. No one has any secret answers. Basically no one really knows more than anyone else. Yet it seems everyone is looking for answers. In all honesty I stopped looking for answers…my simple answer is the price is going up…It is one of the strongest markets based out of 70+ markets… I ask myself how much is this going to cost me if the trade does not work…and if it costs less than 1% of my account as well as some other filters…Let me take a shot…
Actually all of this is automated in mechanica… but that is it…It has been an evolution of seeing virtually every mistake possible and adhering & learning from them.
Some say the price of gold is going up because of some the central banks buying. Maybe yes…maybe no. The fact is that India..China and Russia have all been recent purchasers…It sounded impressive that the Reserve Bank of India had purchased 200 metric tons of gold from the International Monetary Fund in October. ..Even more impressive this purchase boosted the central bank’s gold reserves by nearly 56%. WOW…that is why gold went up… but the somber reality is gold accounted for just 4% of the Reserve Bank of India reserves…Next one might argue about China…They hold 1,054 tons of gold which represents1.9% of its total reserves. They still hold alot more dollars than gold. I can continue with Russia…but the same story..basically it is a small percentage of their reserves…
My simple point… Gold is moving …simply for the sake it is moving.. for a trend follower to be successful they do not need the fundamental reasons… they simply need to take low risk bets and put them out there… If soybeans started moving…I would not need a reason to buy or sell them…nor would any successful commodity trading advisor… Price action is where it begins…and where it ends.
Send For Our Free Report- The Right Trading System Changes Everything: Just fill out the form in the upper left corner.
Futures trading involves risk. People can and do lose money