Gold 
“While silver has been grabbing headlines lately, gold prices have been steadily trending higher following their correction in late October. After touching an intraday low of $3,901.30 on 28 October, prices have since recovered the bulk of the pullback from the record intraday high of $4,398 reached on 20 October. On 4 December, gold settled at $4,243, approximately 3.5% below its all-time intraday high. The magnitude and speed of the recovery reinforce that the October sell-off was corrective rather than structural.
The pullback in October was somewhat expected given the rapid gain in gold prices and the serial setting of numerous record highs. The strong gains in gold prices since August made the market ripe for correction. The strength in gold prices had drawn several short-term traders who were quick to exit the market when momentum in price gains slowed. This resulted in a correction in the market, but not a change in trend. Gold’s ability to hold above $3,900 and resume rising from there speaks volumes regarding the underlying bullishness toward the metal.”
The full Precious Metals Advisory report is available directly from CPM Group. For more information, visit their website, www.cpmgroup.com
*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
