Sunday, May 11, 2025

Gold price movement expectations

In my earlier msg, I had talked about hidden assets in listed company. The analogy can be brought to country level. For example, USA had about 8133 metric tons of gold. Some quantity might have disappeared for various reason. The book value of USA held gold is USD 42.22 per Troy ounce. Current gold market value is about 3400 USD per Troy ounce. If US were revalued its gold holdings, it can give some leverage in its 37 to38 trillions debt. There had been speculation that US A will revalue its gold holdings. One catch is that their gold holdings will give them about 900 billion USD added value and this cannot solve their USD 37 to38 trillions total debt level. Because of tariffs and non-settled wars there are uncertainties. This gives a push to gold price, may go up further, before a major pull back in gold price. I personally had seen and bought gold at SGD 5.25 for one gram of gold in late 1970s, now the same is priced at SGD 137.80 per gram as of 07.05.2025 @ 3.30 pm in Singapore. Gold is only a perceived safe heaven asset. Cost info: Earlier it was thought to get gold one ounce from ground average cost was USD 1300. Recently Australian New mount mines reported same cost at USD 1681 per ounce.  These translate to per gram SGD at 54.50 earlier vs now 70.5 SGD. But current market price is 137.80 SGD. So, 137.89 minus 70.5 equals SGD 67.30 is being eaten by mines as profit, middleman commission, storage and transportation costs, trading exchange spreads and costs etc. This SGD 67.30 is very high and will come down in medium term, but now other factors are holding the gold price high. Planet Jupiter/ Guru movement is correlated to gold price movement. Jupiter is moving out of Venus based Reshabha rasi to Mercury based Gemini rasi around this weekend.  This Jupiter is not aspected by Satrun, Mars Raghu or Kethu. That means this Jupiter is on its own without any negative influence. Mercury is good for trading both up and down. Expected gold trading volatility to increase considerably and gold price movements may offer good opportunities for an experienced trader. Good luck in your trading of yellow metal.

If you have better ways of trading gold, please do feedback. 

C N Nachiappan 

11 MAY 2025, 

Singapore.

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