For gold analysts and traders, especially those with one-day to two-week trading styles, most of them are essentially chartists, or purely technical analysts.
While they occasionally focus on fundamental developments, this is an unconventional activity that is not part of the regular trading process.
Many investors, especially newbies, like to collect or focus only on various developments in market fundamentals, including data, speeches, rumors, etc.
“And decide which to buy or sell.
The idea of buying and selling based on basic information is terrifying, and it’s hard to sustain profits over time.
Arguably, this is a failed trading concept.
Are fundamentals useless to traders?
You can say yes or no.
Because there are many traders who rely entirely on technical charts and other analytical methods without any help from fundamental analysis to sustain profits over the long term, fundamentals may be “unhelpful” to these people.
But why is it “useless” for trading when fundamentals are still one of the important factors that cause market price volatility?
In fact, the usefulness of the fundamentals is only reflected in influencing market capital flows, but it does not completely determine their flows.
The most immediate is the impact of market expectations on capital flows.
It could be the same thing.
The market has a different understanding, which leads to different capital flows.
As a result, many markets are not uniformly favorable, which is something investors must take note of.
As mentioned above, a very critical link — market expectations affect capital flows and determine market price fluctuations, which is a very important and most direct factor.
At the same time, it should also be noted that expectations alone are meaningless.
Only by putting money into this market to reflect the expectations and thoughts of investors can it have an impact on market price movements.
If there are only expectations and no capital flows, market prices will not fluctuate.
It’s a bit like when the market closes over the weekend and a listed company announces good news or bad news, but the price still doesn’t change because there are no investors in the market, there’s no money flowing, so the price doesn’t change.
Markets shrugged off the Fed‘s doubling, the dollar fell from a three-week high and gold rallied more than $20.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
