Gold has become a sideshow, but it is up on the week, rising from $US 319.70 on September 27 to $US 322.10 on October 4. Meanwhile, and all around it, paper markets continue to tumble. Worst hit have been world stock markets, as the downside momentum of a dismal September shows no signs of slackening as the "crash month", October, begins.
With the exception of that $US 319.70 close on Sept. 27, spot future Gold has now closed above $US 320 every day since Sept. 18. It has been marking time right along with the US Dollar. Three weeks ago, the $US index closed at 108.06. Two weeks ago, it closed at 108.10. Last week, the $US index fell 0.20 point on the Friday to close at 107.95. And on October 4, the $US index rose 0.66 points to close at 108.02
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 October 4 at $US 329.90.
As you can see on this table, the Dow has now lost more than ONE QUARTER of its value since Gold breached $US 300 in late March. From its all time high of 11723 set in January 2000, the Dow is now down by 35.78%. Gold fell from $US 414 in February 1996 to $US 253 in September 1999. that's a fall of 38.89%. As you can see, the Dow is catching up fast. And the Dow is in a bear market. Gold isn't, it confirmed its bottom in May 2001 and its bull Market in March 2002.
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, Gold is right at its shorter-term ten day moving averages and is conforming to an uptrend which has been in place ever since it went below $US 300 - to $US 298 intraday - back on August 1. On the weekly bar chart, Gold has spent its second week in a row trading above its shorter-term (20 week) moving average. It hasn't done that since mid July. And on the point and figure chart, buyers keep coming in at higher levels as Gold challenges its June 2002 high.
And finally, here's one final perspective, comparing Gold's 2002 high closing level set on June 4 with its level today.
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Gold's percentage fall since its hit its 2002 high is still less than the equivalent percentage fall on the $US index. But Gold is still down since June 4, not up. If the action on spot future $US Gold had "mirrored" the action on the $US index since June 4, then Gold would be 2.82% ABOVE its June 4 level of $US 327.80. That would put Gold at $US 337.00.
Ever since US Labor Day, the performance on world stock markets has been nothing short of catastrophic, yet Gold has hardly moved since September 6 when it closed at $US 320.40. This continues to be a "miraculous" performance and one which CANNOT be sustained indefinitely.