by James Rickards
Daily Reckoning
Gold had a nice run last week. It traded up from $1,769 per ounce on Monday, November 30, to $1,842 per ounce by the close on Friday, December 4. That’s a 4.1% gain, not a bad week’s work. Gold’s trading at about the same level today. Still, this mini-rally has to be put in the context of the steep tumble that preceded it.
From an interim peak of $1,951 per ounce on November 6, gold fell to $1,769 per ounce on November 30, a 9.3% decline in just three weeks. This quick decline was the latest leg down in an intermediate-term fall from $2,063 per ounce on August 26, 2020. From that all-time high, gold fell 14.3% in three months.
The decline since August and the recent November downdraft have gold investors on edge. Is the bull market over? Is gold on its way down to the $1,200 to $1,400 per ounce range it held from early 2016 to mid-2019?