19d (edited) • General discussion
Why hasn’t gold moved the way people expected?
One of our newest members today and it was fantastic to hear the hypothesis of gold and where we stand on it. This is driving me to do a brief explanation as to why I think gold hasn’t surge but it hasn’t had a sell off. Please see below my own reasoning behind this. In my next post, I will also upload two charts, one daily charts of gold and the other a 4 hour chart of gold there you will see my current view on gold within the context of days and the four hour.
Over the past week there’s been a lot of uncertainty in the markets with everything going on geopolitically, and normally you would expect gold to move much higher in that kind of environment.
But it hasn’t really surged in the way many people expected.
For me, the reason comes down to competing forces.
On one side, you have risk and uncertainty which should support gold. But on the other side, you have rising oil prices feeding into inflation concerns.
That then puts pressure on interest rates to stay higher, which keeps yields elevated and liquidity tighter.
When money becomes more expensive and liquidity tightens, it tends to limit how far assets like gold and even bitcoin can move.
So what we’re seeing isn’t gold failing to react, it’s gold being pulled in two different directions at the same time.
That’s why price action feels slower and less aggressive than expected.
For me, this is a reminder that markets are rarely driven by one factor. It’s usually multiple forces happening at the same time.
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Why hasn’t gold moved the way people expected?
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