Saturday, November 1, 2014

Gold price has a "all the grains of sand on the beach to one" moment

Gold and silver prices continued to fall overnight and into the weekly close. Gold closed below the recent strong support of $1,180 finishing the week at $1,172. Silver also finished the week weaker at $16.14.

Although the most astonishing thing about the move overnight, apart from the fact that some cretins sold real money in exchange for digital magic beans was the percentage fall in the US dollar gold price. Overnight the gold price fell 2.14%, unusual in its own right as the gold price rarely moves move than 2% in one trading day, but astonishingly this was the exact same percentage fall in price of the day before (see chart below). If anyone out there could give us a rough figure on how likely such a probability is I would love to know, but I suspect it is in the range of one beach worth of grains of sand to one against.

Makes you wonder if there is a algo out there with the following data entry form:

Percentage move?  2.14

Move up or down?  down

Run for (days)?  2

chart from goldprice.org