Apparently excitable and sufficiently widespread were reports this past week on Gold going up such as to generate an email from a valued, non-financial media friend specifically quoting from the Dow wires that“… demand for the haven metal rose through the week amid broader market turmoil.” In turn, our friend leveraged this into the hopeful expectation for an invitation to a popular local eatery to be “...paid for by your new-found profits.“

Toward bringing our good friend’s feet back to ground, we replied as follows: 

“…Whilst your shared enthusiasm lifts our spirits, let alone as does your valued and honored friendship, Gold’s movements remain puny at best. Oh the FinMedia in their ignorance take a worked-up view of it all, as do they similarly refer to these mild stock market corrections as ‘routs’ and ‘decimations’. ‘Twill be interesting to assess what descriptives up with which they’ll come upon Gold and Sister Silver both accelerating higher in a far more material sense and as the S&P 500 furthers its 25%+ ‘correction’ down to 2154…”

At the end of the day, indeed the week, Gold netted a yawning gain of five points as below portrayed in the weekly bars by settling Friday at 1235, the prior three days’ respective settles being also at 1235, 1236 and 1233. To be sure, following Gold’s parabolic trend having flipped from Short to Long seven weeks back on 14 September, price’s rise from then at 1198 to today is but 3%. Moreover as we’ve herein been anticipating, price actually peeked inside of The Box (1240-1280) intra-day during the last two sessions of this week: we nonetheless still view The Box as a fairly non-porous concrete slab which, barring a substantive buyers’ push, ought cause all sorts of fits and starts up through which to get, if at all. A sorta scary scenario:

Truly scary is the Gold/Silver ratio still dwelling above the once-rarefied level of 80x. As herein queried a week ago, is 80x becoming the “new normal”? Here’s the picture from 2001-to-date: