This gold price correction is normal and healthy, says the DNA of volatility
“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: In the August edition of News & Views, our monthly newsletter, we mention 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
Repost from 10-1-2020