The Hope Tribute Malaysia post “Outlier economic and bespoke investing outlook #27” of 4.12.18 is referred.
Compared with the 4.12.18 scenario the Ringgit strengthened against the greenback at 4.1310, thus although the world gold price against base has increased by 8.4% the local gold price is still below base MYR175.72. The EP is 0.7% lower than base.
The pending cash out quote spread is now MYR6.00 at MYR169.10 (cimb gold acct), indeed above our last purchase cost of MYR166 meaning increasing our gold holdings on 12.10.18 and 28.11.18 are vindicated.
Because world gold price has risen with the weakening greenback, a $1350 price threshold.appear to be more prudent for the next legs up precious gold investing because we want a EP above base cushion.
U.S – China trade talks are in order and since end of November 2018 the U.S. Federal Reserve Chair Jerome Powell remained dovish. Briexit developments appear to be going our way and France’s yellow vest protests are in their 14th week, which underscores our attachment with George Soros’ 17 February 2019 inkling of the European conglomerate of countries is “sleepwalking into oblivion”.
Update 1 March 2019
World gold price closed higher on 18.2.19 and local gold price on 20.2.19 was 1% higher than base. The EP of MYR 177.70 was 0.5% higher. You have to go back to 9 June 2017 (post Britain 8/6 elections) when the EP was 178.09 at one stage on world gold price of USD1279 and forex MYR4.3310 to the dollar. Local gold price was MYR178.20 per gram.
The Dow closed 26,031 points and world gold price recovered to USD1329 per ounce on 22.2.19. Liquidated gold holdings on 27.2.19 to place hold money elsewhere.