Despite falling 20.21% between 6 and 26 September the gold bull market remains intact. In fact this correction spells opportunity for those looking to enter this decade long bull market.
Gold got over extended during July & August and as I wrote about several times, it was due for a correction. This chart shows gold’s primary trend going all the way back to 2001 and it’s clear that this most recent fall is nothing out of the ordinary.
10 year chart of gold
Last month gold fell all the way back to its 200-day moving average which it has done many times before. The 200-day moving average has acted as long-term support for the yellow metal and each time the price reaches this level strong buying comes in. These types of mean reverting corrections give those with a long-term view a low risk entry point into the only asset class that has risen for 10 years in a row and has had no down years.