In my August 25 post (“Gold And Deflationary Pressures“) I spoke of the correction in Gold and its broader economic implications. At that time Gold was at $1726/oz (December futures.)
Now, the December Gold futures are at $1645.1/oz. If one views Gold’s ascent from early 2009, one can see a rising trendline – one that seems very significant. A daily chart of Gold since 2008 is shown below, with the rising trendline (which has served as support) in blue, as well as the 50 and 200dmas in dark blue and red, respectively:
(click on chart to enlarge image)(chart courtesy of StockCharts.com; annotations by the author)
I am continuing to monitor Gold’s correction very closely, for many reasons including those indicated in the aforementioned August 25 post.
The Special Note summarizes my overall thoughts about our economic situation
SPX at 1175.38 as this post is written