Yesterday the Dow Jones Industrial Average closed above 54,000 for the first time in its history. Market is up. All is good in the real world. Oil prices also crashed again - they hit US75.33 per barrel.
The best news is old news. Gold prices have been crashing for the past six months. See the chart below. Gold hit almost US$4000 per ounce yesterday - from a super high of around US5,300 around March 2026.
Of all the price indicators for the good health of the world economy the price of gold says plenty of things. Gold is the ultimate capture of real value in this entire world. And gold always precedes most other price movements. When gold goes up, the prices of most other things go up. When gold goes down the prices of most other things also goes down.
As you can see the price of gold began going down SIX MONTHS ago. Gold captures flight capital or worried money. When conditions around the world are uncertain, people buy gold. Gold is deemed less risky, more secure. But when things look good around the world, people will take more risks. Start new businesses etc. For which they must sell gold. And buy equity (buy shares lah). So during good times, gold prices should drop and share prices and equity prices should move up.
