Why I Expect Gold Prices to Rebound from Last Week’s 1.9% Drop

Jon Gold, Market Commentary, Precious Metals

After a massive 8.7% rally since July 7, gold prices were due for some weakness. That weakness finally arrived last week, as prices dropped 1.9% between Friday, Sept. 8, and Friday, Sept. 15.
Fortunately, I had been warning investors that we should expect a pullback…
You see, the rally from Aug. 22 into Friday, Sept. 8, took the price of gold from $1,291 all the way to $1,351. That’s a massive 4.6% gain in just over two weeks.
I said those gains had to be digested. I also pointed out that the U. S. dollar had sold off too far, with the U. S. Dollar Index (DXY) falling to a 32-month low of 91.35 on Sept. 8. Since it had become technically oversold, we were due for some sort of near-term bounce, and now the DXY is back up to 91.88 today (Monday, Sept. 18).

This post was published at Wall Street Examiner by Peter Krauth ‘ September 18, 2017.