Rules of the Gold Market.....

These are some observations, rules if you will, i have observed from trading the gold markets over these last few years. They are in no particular order. And keep in mind, these things don't always happen, just most of the times. (This list is meant to be tongue in cheek--somewhat)



1. Bad economic news is bad for gold while good economic news is disasterous for gold.


2. Gold around 2am coming into London, gets slammed


3. Gold around 8am, coming in NY gets slammed


4. If gold is down more than $7 coming into NY, that loss at some point will be doubled in the NY seesion.


5. If gold is up more than $7 coming into NY, that gain will be halved almost immediatley.


6. If gold is up more than $12 coming into NY, then that gain, at the minimum will be halved by the close of NY.


7. If gold is down more than $7 coming into NY, and makes a comeback to flat, more often than not the metal will close on the lows of the day.


8. Gold is almost always down the day Bernanke makes a major speech or policy movement.


9. Gold is almost always down on jobs Friday.


10 Gold rarely closes above $10 in a single session. (This rule seems to be changing).


11 Gold takes the stairs higher yet the elevator down.


12 The gold market is a 2 steps higher 1.95 steps back type of thing.



13. Gold will almost always certainly sell off the 10 minutes of trading in NY



14. Gold will always sell off on Friday, right after NY closes when trading is at its thinnest. This is especially true if gold has been higher that day.



15. Gold attatches itself to any market that is down. If pork belly futures are down in Lichenstein---watch out!