Loading ...The psychology of drawdowns
It’s an ugly looking weekly Scoreboard, this week, particularly for the miners, but after 9 straight up weeks for Gold, we can’t complain!
What else could I possibly talk about tomorrow except this drawdown, and to examine it in the context of 55 years of precious metals research.
Gold could fall all the way back to around 3600 and still be safely inside the existing trend channel. That means that another 500 could be pared off without damaging the chart. I don’t think that will happen but if it did we would live as gold bugs and be ready for the next move upwards.
Maybe be cautious about jumping back in too early.
Agreed, Farmer. We are so far above moving averages – 50 day moving average is $3,724 and 200 day moving average is $3,286 so plenty of room to consolidate above those levels.