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GoldFix Weekly: Gold-Backed Tokens Launched

Welcome. GoldFix Weekly is original content. The goal is to give you, the reader, some basis for looking at markets as you prepare your own trading week. Second, it aims to give you more tools, or at least the basis for developing your own tools to navigate markets. To that end we expect there will be changes based on feedback. Gold is the jumping off point for analysis.

This Issue
  1. Markets: weekly summary
  2. Precious: gold summary
  3. News: stories on metals and markets
  4. Technicals: active trading levels
  5. Tools: educational videos
  6. Charts: related markets
  7. Calendar: next week
  8. Disclaimer: read this
1. Markets
Capital Markets Summary
For the 10 months, the US stock market performed better while we slept than when we were awake. However that is done and over as overnight performance was flat and US trading hours is where the fun is now. This could be a comment on the ongoing financial market war with China, and we have opinions but will reserve them for another time at present.
Via Zerohedge: Stocks now going up also when we are awake- SHOCKING
Via Zerohedge: Stocks now going up also when we are awake- SHOCKING
After a volatile week, all major US equity indices closed higher by around 1%. Financials outperformed as higher rates are good for their business, energy ended unchanged held back by the price of Crude oil and staple goods ended lower on the week. Bonds had their worst week since June. Crypto was up for 3rd week in a row after big intraweek rebound with Ethereum outperforming Bitcoin.
Stocks, Oil, and Silver
Stocks, Oil, and Silver
This was the best week for the dollar since June, erasing all the post-FOMC losses from last week. Commodities were all ugly this week as the dollar rallied, with oil worst amid the Delta-driven growth scares. Only Copper resembled something close to a rally but it also failed late in the week. It was the worst week for Gold since June, ending well below $1800. This was also the worst week for oil since October. Full Recap
2. Precious
Activity Recap
The week started out simple enough. The Dollar was flat and Bonds were slightly bid. Gold and Silver were flat. it seemed like summer doldrums. The $1800 strike was doing its thing and Gold hovered just above it most of the week. But wednesday rang an alarm bell. Futures attempted to rally a third time over the $1840 level. Bonds were leading higher. The promise of higher negative real rates seemed to put Gold close to the edge of a real break out.
Late Morning things turned. Bonds backed off and Gold followed suit. The market sold all the way back to unchanged on the day leaving an ugly candle on the chart. Thursday saw a push lower that was also rejected. So all seems on balance ok.
Then Friday happened. And although the NFP was an encouraging number on several levels, the Gold market in our opinion over-reacted to the report. The solid job creation was an excuse to push trapped momentum type longs out of the market. Once the gravitation al pull of the $1800 strike was broken below, it was a ride downward the rest of the day.
Gc Weekly
Gc Weekly
Nothing has changed except the price. We have said many times before that Basel 3 makes this a bad market for large hedge funds and a good market for stackers looking for discounts as well as nimble day-traders. Volumes will drop, volatility will increase, and prices will whip more. This is what we saw. If you wish to own Gold, yo are getting a favor. If you wish to day trade Gold, you are getting movement. But if you re a macro long gold futures fund, you are in for a rough time.
3. News
Precious Metals Firm Kitco Launches Gold-Backed Tokens Built on Ethereum – Bitcoin News
On August 4, the precious metals firm Kitco Gold announced the launch of a gold-backed stablecoin which will leverage an audit process via Cohen & Company with monthly attestation reports. Kitco has partnered with Tradewind Markets, First Digital Trust, and Stably, an asset tokenization provider. The gold-backed ERC20 tokens called “kitco gold (KGLD)” “represent one true, troy ounce of fine gold,” according to Kitco.
Kitco Launches KGLD Token Backed by a Troy Ounce of .999 Gold
In the seventies, Bart Kitner started trading gold with funds he got from a loan and managed to expand his business into a massive precious metals company from a mere $700 investment. The global precious metals (PMs) market, Kitco, is considered an authority when it comes to PMs like gold, platinum, palladium, and silver. The Montreal-based PM company also runs a popular PM-focused website that offers financial news and PM market data.
Now the company is getting into cryptocurrency solutions as Kitco revealed it has partnered with the custodian First Digital Trust, the blockchain provider Tradewind Markets, and tokenization firm Stably. Kitco will launch a token called kitco gold (KGLD) which will translate into a single troy ounce of .9999 fine gold. The Kitco ERC20 tokens will be backed by gold reserves held in Directreserve vaults. The well-known CPA verification firm Cohen & Company will bolster the coin’s attestation process.
Because Kitco’s token is an ERC20, the firm believes the coin can be easily added to exchanges, wallet platforms, and defi ecosystems. The token’s value is recorded in real-time using the same market value of the spot gold price. John Dourekas, the chief business development officer of Kitco Digital Metals Group, explained on Wednesday that Kitco has been anticipating the release of KGLD.
“We’ve been looking forward to unveiling Kitco Gold, representing a digital receipt of physical gold ownership, which is digitally spendable,” Dourekas said in a statement. “Buyers will be able to access a secure and reliable gold token, the most robust asset class to date. Institutional investors will have a competitive alternative to traditional gold products such as gold ETFs, with the additional benefits of real-time trading and settlement enabled by blockchain technology.”
Gold Tokens Jump 30-Fold Since 2020, Kitco’s Gold Coin Will Face Competition
Kitco’s announcement follows the recent report published by Arcane Research which details that gold-pegged tokens have jumped in value 30x since the start of 2020. The PM dealer’s move also follows the largest increase in inflationary pressure since the 2008 financial crisis. Kitco has further indicated there’s been a trend of traditional financial institutions looking for stable hedges like PMs and crypto-assets.
“Trust and verification are hallmarks of a well-functioning market,” Tradewind Markets CEO Michael Albanese said during Kitco’s gold-backed token launch announcement. “We are pleased to be applying best practices from other asset markets to make gold as an investment asset more secure, accessible, and cost-efficient.”
Kitco’s KGLD creation will face gold token competitors as there are tokenized versions of both troy ounce measurements of gold and grams as well. KGLD will face projects like Tether Gold (XAUT), Digixglobal (DGX), PAX Gold (PAXG), Perth Mint Gold Token (PMGT), Gold Coin (GLC), and many more. In 2020, on a few occasions reports had shown gold-backed tokens were fetching premiums.- FULL STORY
What’s It Mean?
It means that as more and more venues get access to Gold pricing the Comex will weaken as price determinant and prices WILL go up much higher. Not unlike an IPO does for a stock. Just not on our schedule.
GoldFix Popular Previous Issues
4. Technicals
Report Excerpts Courtesy MoorAnalytics.com
Gold
Shorter Term: The break above $1,834.6-5.0 and back below has brought in $75.1 of the pressure warned about. The decent trade below $1,812.8 (+1 tic per/hour) warns of decent pressure. We have seen $50.9 of this so far. Decent trade back above where this comes in at $1,815.7 (+1 tic per/hour starting at 6:00pm) should bring in decent renewed strength. The decent trade below $1,806.6 also warns of pressure. We have seen $47.1 so far.
Gold Redacted
Gold Redacted
On a longer timeframe : On 6/14 we left a large bearish reversal above that warned of pressure for days/weeks—we have seen $115.8 of this so far. The large bullish reversal left below last Thursday was negated with the decent trade below $1,806.6, which now warns of renewed pressure.
5. Tools
Best of the Week’s Educational Pieces.
VBL
CLIP: Explained in 2 minutes @CNBC stated- "The Senate’s infrastructure bill requires any “broker” to report customer information to the IRS, but it could expand the definition of a broker to include a vast amount"of participants.
#Bitcoin https://t.co/mmmwQqaIJJ
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PFOF
Given recent attention $Hood IPO, here's full explanation of how PFOF works The 2hr lecture is deep dive into definition, practices, and real life experience in this practice. Taking it down in a week
Passcode: 3Dyb$+=+
https://t.co/6YZaA1WVBF
Sunday Mock Trading: 3p.m.- 5p.m. ET
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Topic: GoldFix Sunday Class
Mock Trading, Mkt Analysis, Q&A on any mkt stuff

Every week on Sun, until Aug 22, 2021.
Weekly: Join Zoom Meeting
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6. Charts
Gold
Silver
US Dollar
Bonds
Treasury Inflation Protected Bonds
7. Calendar
Some of the upcoming week’s key data releases and market events
MONDAY, AUG. 9
  • 10 am Job openings June
TUESDAY, AUG. 10
  • 6 am NFIB small-business index July
WEDNESDAY, AUG. 11
  • 8:30 am Consumer price index July
THURSDAY, AUG. 12
  • 8:30 am Initial jobless claims (regular state program) Aug. 7
  • 8:30 am Continuing jobless claims (regular state program) July 31
  • 8:30 am Producer price index July
FRIDAY, AUG. 13
  • 8:30 am Import price index July
  • 10 am UMich consumer sentiment index (early) Aug.
Main Source: MarketWatch
Table Tennis Great Rally
8. Disclaimer
Disclaimer : Nobody is telling you to do anything here. Anybody who tells you to do something without first intimately knowing your personal situation is irresponsible at best and manipulative at worst. Worse, anyone who acts on other people’s opinions without first doing an inventory of their own situation shouldn’t be surprised if they lose money.
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