First the $US 300 level held. Then (with a couple of short sojourns underneath it) the $US 310 level held. Now, spot future Gold has climbed back above the $US 320 level. The Friday, September 6 close of $US 320.40 is Gold's highest closing level since June 26. Gold hit its 2002 high closing level of $US 327.80 on June 4. It then retreated to $US 302.20 and has now recovered to $US 320.40 - 71% of Gold's correction has now been recovered.
Gold went up every day over the past week. It went up when the $US was falling. It went up when the $US was stationary. And it went up (on Friday, September 6) when the $US was also going up. It was a very good week.
Here are the relative performances of $US Gold, the $US Index, and the Dow since Gold broke above $US 300 on March 27:
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If Gold's gain had exactly mirrored the loss on the $US index since March 27, Gold would have closed on September 6 at $US 332.60.
Look at the performance of Gold compared to the performance of the $US or the Dow (or the S&P 500 or the Nasdaq) since Gold breached $US 300 back in March. As you can see, there is absolutely no contest. As an investment, and more importantly in present circumstances as a preserver of capital, Gold has trashed paper investments this year..
Here's another perspective - a comparison between Gold's 2002 low and its present price and the $US index 2002 high and its present "price". All data is on CLOSING levels:
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On the daily bar chart, the 10-day moving 10 average has jumped back above the 20-day moving average with the Gold price comfortably above both. On the weekly bar chart, Gold has jumped back well above its shorter-term 20 week moving average. And on the point and figure chart, Gold has rebounded from the TOP of its post April 2001 upchannel for the second time. All three charts are now solidly bullish.
And finally, here's one final perspective, comparing Gold's 2002 high set on June 4 with its level today.
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The percentage terms in Gold since it hit its 2002 high on June 4 is now less than the percentage fall of the $US index over the same period. Nonetheless, if the action on spot future $US Gold had "mirrored" the action on the $US index since June 4, then Gold would be 3.80% ABOVE its June 4 level of $US 327.80. That would put Gold at $US 340.30.
Gold has had a very good week this week, rising $US 7.60. It's spot future close of $US 320.40 on September 6 was its highest close since June 26. As the stock market "recovery" of late July - early August continues to falter, Gold continues to climb towards its early June highs. Another week like the one just finished would bring it right back to those highs.
Spot future Gold last closed BELOW $US 300 on April 9. The correction from the 2002 high of June 4 ($US 327.80) is now just over three months old. We'll see how much longer it lasts.