A Piece of Gold History in the Making

A Piece of Gold History in the Making

Fast on the heels of last week’s announcement of continued gains across a range of commodities trading fixed periods of rise and fall, Kenton-Dau Limited today released data showing the same regular patterns at work in intra-day gold. The company claims this is the first time investors have had real-time insight into the inner workings of the gold market.

“We are seeing a regular pattern of one long trade and one short trade every two days,” says Branton Kenton-Dau, Principal of Kenton-Dau Limited. “Since trading began in January returns are running at 120% per annum.”

The company claims that through the fixed periods of rise and fall a market is expressing its electrical nature. In electrical jargon the periods are called ‘j’. They occur when the rotor of an electric motor or generator is at certain points in its rotation. At these points the system is storing and retrieving current. For ‘j’ to occur at fixed intervals in a market like gold the ‘rotor’ of the market must be turning at a constant rate.

“This is the first time we have seen ‘j’ at work at the intra-day level,” says Kenton-Dau. “The results are expanding our understanding of how gold and other markets work.”

Gold’s recent volatility has helped the company confirm the presence of ‘j’ as a key component of the market’s underlying electrical structure. “‘j’ expresses itself most clearly when there is volatility,” says Kenton-Dau. “One benefit of this feature is that ‘j’ becomes an effective method of securing gains and reducing risk in periods of high volatility.” The company is currently providing the timings of ‘j’ to upstream commodity producers to reduce their exposure to falling prices.

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