We posted in the recent past that gold should have made a nice rally if it had settled above $1,300.00 per ounce, and it sure did. In fact, it went to our near-term target of $1,360.00 as well. Our long-term target is infinity, given the insane amount of global debt being added day-by-day; however, it will always pull back from time time. It’s normal.
Currently gold is in one of these normal small pullbacks and a reason could be a China: the Chinese Golden Week Holiday. The Shanghai Gold Exchange is CLOSED until October 9th. And as the charts below show, the gold market will drop due to the lack of buying, and then pickup again when the exchange re-opens.
If history repeats again, this is your time to BUY THE DIP – BUY GOLD SOON.