Gold History

Gold lost $100 on Friday last week, bringing the total losses from its 6th of September high of $1923.70 to 13% to close Friday at $1662.

For those of us who watch the gold market, its cause for excitement, and not alarm. Everytime gold loses 10% or more in a short timespan after a gain of more than 10% in an equally short timespan, it’s the precursor for a period of consolidation before the next new high is reached.

In 2008, gold lost better than 13% twice.

First was in March 08 on the Fed’s interest rate cut of .75% to 2.25%. It had touched a new high of $1033 the day before, and promptly fell back to $876. 

Then again when after hitting $936.30 on October 10th, 2008, it lost 27% of its value briefly when it touched $681 on October 24, 2008, before closing that day just under $730.

At the end of 2010, gold touched 1227.50, then lost 12.4% in a breathtaking drop to 1075.20 over a matter of two weeks.

The pattern then is that each time gold sprints to a new high, it miraculously gets kneecapped and the wind leaves it sails and for a while it muddles along until the next geo-economic oh shit moment happens and the battle hardened gold players come back.