Actually, Gold did better this week than it did last week. Last week, it fell $US 5.80 ($US 322.10 to $US 316.30). This week, it is down "only" $US 3.60 ($US 316.30 to $US 312.70) after an excursion as low as $US 311.60 (closing basis) on October 17.
As it was over the week of Oct. 7-11, the main "culprit" for Gold's continuing fall this week has been the ongoing rally on US stock markets. The damage this week was actually done on Tuesday, October 15 when the Dow had the biggest one day rise yet in its rally - up 378 points to 8255 - almost 1000 points above the 2002 low of 7286 it had set only four trading days earlier. On that day, the spot Comex price fell $US 5.20 to $US 312.60.
When the Dow surged 347 points on Oct. 1, Gold fell $US 3.00. When the Dow surged 248 points on Oct. 10, Gold fell $US 3.10. When the Dow surged 378 points on October 15, Gold fell $US 5.20. Gold is actually down $US 8.20 since October 1. Add those three falls up and you can see that US stock markets and Gold are very good mirror images of each other, when stocks are rising that is. When stock markets are falling, Gold is not (yet) keeping up.
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 11 at $US 327.70.
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 has spent the entire week both 10 and 20 day moving averages. On top of that, the shorter-term average has dipped just below the longer-term one. On the weekly bar chart, Gold has dipped about half way back to its longer-term (20 week) moving average. Note that Gold dipped down to touch that longer-term MA at the bottom of its previous correction in late July. And on the point and figure chart, we now have two peaks, the $US 327.80 2002 high on June 4 and the $US 326 close on Sept. 24. The present correction looks almost exactly the same as the previous one, both brought about, as already stated, by BIG rallies on the stock market.
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 loss since its June 4 2002 high is now more than twice as big in percentage terms than the loss on the $US index over the same period. If the action on spot future $US Gold had "mirrored" the action on the $US index since June 4, then Gold would be 2.07% ABOVE its June 4 level of $US 327.80. That would put Gold at $US 334.60.
Every time there is a rally on US stock markets, Gold slips back. Here we have the second example of this, in two months. The problem is that every time the US stock markets rally, they then fall away to lower lows. There is NOTHING on the financial or economic horizon to change that pattern. But when war is looming, as it now is, and a US election is less than three weeks away, then all "stops" are liable to be pulled out.