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Seeking Alpha/Frank Holmes/9-29-2020
“I’ve already seen numerous headlines questioning whether this is the end of the gold rally. Hardly. Corrections such as this are normal and healthy. They’re a part of gold’s DNA of volatility. During the monster rally of the 2000s that culminated in gold hitting its previous record high of $1,900, there were several significant pullbacks, some of them exceeding 20 percent.”
USAGOLD note: We mentioned in the August edition of News & Views, our monthly newsletter that a whole new grouping of professional investors – pension funds, private wealth management, insurance companies, and sovereign wealth funds – will bring considerable market savvy and purchasing power to the table. One immediate result might be more buying interest on price dips. Another might be a better blend of investment psychology and objectives that could have a settling effect on the market overall. The chart immediately below indicates, as Holmes points out, the presence of a buy the dip mentality.
Chart courtesy of Seeking Alpha • • • Click to enlarge
The post This gold price correction is normal and healthy, says the DNA of volatility first appeared on Today’s top gold news and opinion.