Debasement Trading 101My Trading Background:
Over years, I've traded stocks, options, futures, and international markets. Tried quantitative options strategies, income-generating portfolios, day trading futures, and same-day expiration options. Experienced profits and losses, but none led to massive gains.
Debasement Trading
Entering 2025, I switched to Gold Futures ( COMEX:GC1! ). Frustrated by market makers' whims—rate cuts one day, consumer spending the next. High beta increased account risk.
Benefits of alternative assets like gold:
Straightforward: Few key drivers affect pricing.
Hedge against market risk: Profit when others lose.
Reduced downside: Traded at fair value via supply/demand and physical delivery—more predictable and stable (though less so now).
Gold is secondary to primary markets but offers quantitative, reliable guidance. I hold positions for months, reducing stress.
Current Key Drivers
As of December 3, 2025:
1. Fed Rate Cut (Dec)- Anticipation rose from 54% (early Nov) to 88%.
2. QT Termination - Permanent end to quantitative tightening since 2022.
3. Forex Risks - USD/KRW at historic 1,440; signals international currency pressures.
4. Japan Bond Yields - 10Y yield up 100 bps; reflects potential rate hikes, slower GDP, reduced productivity/spending amid tourism-driven inflation.
5. Pair Trading - Silver elevating beyond record high price level earlier this week followed by optimistic demand outlook paired with plunging Crypto currency, inflow of safe haven liquidity back into conventional safe haven asset classes.
Chart Analysis
1. Hourly charted bullish regression trend maintained
2. Downside Risk to $4,040 - $4,005
3. Sell-Off of recent gains ahead of Major economic events.
Bullish Outlook
Gold remains extremely bullish. With Fed rate cuts and other central banks holding/raising rates, 2026 price target: $5,000 (per major banks).
Let's build a healthy, educational commodity trading community. Likes, comments, follows appreciated! Share ideas on COMEX:GC1! and $OANDA:XAUUSD.
