Gold rebounds after quick slump
Gold buyers are showing they have some mettle.
The rout last week and the mini-rout today were trying times for gold bulls but they’re passing the test. After hitting $2015 today, gold dropped to $1976 in a quick move as many markets reversed following the S&P 500’s record high. But gold has now rebounded above $2000 and crossed the 61.8% retracement of the intraday drop.
In the bigger picture, I feel better about gold than I did a week ago. The rout shook out the weak hands and there are clearly people accumulating. Warren Buffett will probably pin the Barrick investment on one of his deputies in the days ahead but there is more and more talk about gold on CNBC and I think retail still has much to give, especially with the US dollar struggling.