Central banks

The German economy is suffering its sharpest fall in orders since the 2009 crisis, while global financial markets, particularly in the US, continue to soar.

The bad news is piling up for France, prompting some to take concrete decisions, such as transferring their capital abroad.

This week, we'll look at a couple of interesting long term charts of both gold and the dow to see how technical analysis suggests they MIGHT play out in the decades ahead.

Gold is the best-performing asset class in this century, better than the S&P including reinvested dividends and still NOBODY OWNS GOLD. Only 0.5% of global financial assets are invested in gold. Gold will rise by multiples in the coming years.

Could Donald Trump's election put the brakes on gold's rise? In 2016, the Republican candidate's victory in the US presidential election led to a €100 drop in the price of gold in euros, with the price falling from €1,180 to €1,080 in the four weeks following the election.

Has the gold price reached its ceiling, or is it even in a bubble, as it was in the early 1980s, and is a significant correction imminent? There are strong reasons to believe that the gold price is not yet in a region of extreme overvaluation.

The Fed has cut rates by 50 basis points, but so far this has proved to be a resounding failure: rates are rising, once again threatening the bond market and real estate. A few Nasdaq stocks are playing the role of safe havens, while the price of gold is still climbing silently and parabolically.

The gold price has just hit a new all-time high. Is this an underlying trend or a passing phase? In any case, all the conditions are in place to fuel this ascent.

Just over a year ago, I wrote that physical gold had become more reliable than Treasury bills, a trend now confirmed by Bank of America, which anticipates a potential replacement of Treasury bills by gold as a safe-haven asset, despite JPMorgan's reservations.

The BRICS nations' New Development Bank is still a modest alternative to the World Bank and IMF, held back by limited capital, dependence on the dollar and imperfect governance. However, global rebalancing could work in its favour.