Gold drifts marginally higher, Commerzbank thinks the correction may have run its course

(USAGOLD –9/29/2020) – Gold drifted marginally higher after a quiet night overseas and a strong reversal yesterday in the downtrend that prevailed over the past few trading sessions. At one point in overnight trading, gold was up nearly $40 from the lows registered yesterday. Gold is up $3 this morning at $1886. Silver is up 14¢ at $23.89. Commerzbank thinks gold’s correction may have run its course. “The significant losses were triggered by the rising U.S. dollar, which apparently prompted speculative financial investors to cover net long positions they had previously entered,” writes the firm’s commodity analyst Carsten Fritsch in a report reviewed by Kitco News’ Anna Golubova. “Now that speculators have withdrawn from the market for the most part,” writes Fritsch, “prices should recover again – after all, the environment for precious metals remains positive.”

Chart[s] of the Day

Gold, silver and the DJIA – Year to Date

overlay chart showing gold silver djia performances in percent year to date 9-28-2020

Chart courtesy of TradingView.com • • • Click to enlarge.

Gold, silver and the DJIA – One Year

overlay chart showing performances year to date for gold silver djia in percent as of 9-28-2020

Chart courtesy of TradingView.com • • • Click to enlarge.

Chart note:  Even after gold’s correction which began back in early August, the precious metals have posted some hefty percentage gains year to date and over the past 12 months. As of yesterday (9/28/2020), gold is up 27.86% over the past 12 months even with the recent correction taken into account. Silver – now consistently outperforming gold on a 12-month basis – is up 39.33% and the Dow Jones Industrial Average is up 2.48%.  Year to date, gold is up 23.07%. Silver is up 31.42% and the DJIA is down 4.45%. 

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