Unusually, gold is not itself these days. I say “unusually” because the gold price could - in normal times - be relied upon to give a measured view on the state of the world - both economic and geopolitical cycles ; so, over and above its own supply/demand fundamentals, it is regarded as a scorecard of sorts.
Given that the gold price reacts to a very wide selection of economic indicators has prompted the comment that it represents “the sum of all fears”. As a gauge, it shoulders quite a lot of responsibility. Sometimes a little dull, but often reliable.
… so it matters and hence it is widely watched.
Trouble is ...since 1st March 2024, gold seems to have dissociated itself from most of its traditional relationships, leaving the door wide open for interpretation … I will come back to this point at the end of this note.
Now, if winning matters to you … no matter what the field … then the military treatise “The Art of War” written by Sun Tzu in about 300 BC is essential reading. The guidance applies to military combat, to business negotiations and to regular, everyday life issues. And within the context of the current gold market, there are lessons to be drawn from the book and helpfully, both are linked to China...
The Art of War – if I may paraphrase - is essentially about how to win a war without a shot being fired, but if you must come to blows, then it gives clear rules which if applied will ensure victory. Sun Tzu was undefeated in battle.
Poster Comment:
The point is to win the war before the first battle.