Gold Market

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Describe your dream chocolate bar.


GOLD

Warning: The author used some unseemly analogy of the gold market and forex relationship.  Foremost as an enthusiast of both markets. Lastly, as from the concept of “chocolate as gold bars”.


Gold is commonly viewed as a hedge against inflation, an alternative to the U.S. dollar, and as a store of value in times of economic or political uncertainty.

ANALOGY:/

What’s the alternative to milk? Everyone know it’s chocolate. As a jam, bar or colour. For the taste or consumers choice.

Over the long term, the relationship is mostly inverse, with a weaker USD generally accompanying a higher gold price, and a stronger USD coming with a lower gold price. However, in the short run, each market has its own dynamics and liquidity, which makes short-term trading relationships generally tenuous.

ANALOGY:/

When milk gets costly,  chocolates becomes inexpendable and vice versa.   Also the choice for lactose intolerant –i guess. But here’s this! Both markets run independently of each other though their weird relatedness.


Key facts in gold market:
The gold market is significantly smaller than the forex market, so if you are a  gold trader, you would sooner keep an eye on what’s happening to the dollar, rather than the other way around. With that noted, extreme movements in gold prices tend to attract currency traders’ attention and usually influence the dollar in a mostly inverse fashion. (Referenced from a forex class)

Key facts about chocolate: it always would have consumers as it’s quite more versatile in use and hardly related to health issues than its alternative (milk in lactose intolerance). Note: This is from a chocolate enthusiast and may be biased.

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