Institutional money managers move gargantuan amounts of gold market liquidity. Their fundamentally-based actions create the chart patterns that technical analysts use to try to project the next rally or decline in the gold price.

Note the three big fundamental events that I highlighted on the chart. The Brexit, US election/Indian fiat call-in, and the Italian referendum were all predicted by most analysts to boost the price of gold.The sad reality is that gold went nowhere or tumbled after each of those events.

On the eve of the US election, I warned the world gold community that gold was very vulnerable to a major sell-off, partly because it traded near major sell-side resistance at $1320. What happened?

Gold promptly stunned the gold community and tanked from there, as the Indian fiat call-in overwhelmed the US election news.

So, what now? Well, another major fundamental event is now in play, as of Monday December 5, 2016.

The Shariah Gold Standard was just approved!

Details of the standard are being released at this week’s annual World Islamic Banking Conference in Bahrain.

The bottom line is that gold is set to get a major boost in demand from 25% of the world’s population who are part of the Islamic faith.

The world gold council estimates the boost could be as much as 500 to 1000 tons, which would make the Islam religion a major factor in gold price discovery for decades to come.

Champions adapt. They prosper by adapting.So, gold community citizens need to adapt to the new gold market normal.That means they need to move, somewhat, from mainly a fear trade focus to both a fear trade and love trade focus. 

To repeat: champions adapt. 

In regards to gold demand, I think that most analysts are understating the positive events taking place in India, and overstating the negative ones.

Top Goldman economists are predicting that India not only rebounds from the current downturn caused by the fiat call-in, but prospers from it. Goldman is predicting India will grow at a mind-boggling 8.6% GDP growth rate through March 2018.