Gold goes from star commodity to laggard in shocking reversal
“Spot prices touched a seven-month low on Friday, deepening a slump and breaching through a support level that analysts say could portend further losses. Bullion pared some of Friday’s losses as the dollar moved lower, though is already down more than 6% this year.”
USAGOLD note: Shocking reversal? Does a 6% drop thus far this year qualify as “shocking”? Market leaders – like gold with respect to the commodities complex – often correct while the rest of the field plays catch-up. Nothing new about that. The one thing I’ve learned about gold over my many years in the business is that just when you think you’ve got it pegged, it turns around and does precisely the opposite. It has a mind of its own on the upside……and on the downside, by the way. While the media continues to bash gold at every opportunity, it is still up almost 11% over the past 12 months, while the DJIA, the financial media’s darling, is up 8%.
Gold and Dow Jones Industrial Average
(Percent gain through 2/19/2021)
Chart courtesy of TradingView.com • • • Click to enlarge