Golden Week First off, Happy Thanksgiving fellow Canadians. For any of you gold bugs out there, last week was a dreadful week to say the least. Gold lost well over $80 an ounce and for those who are traders the big concern was that gold fell below some real important technical chart levels. For the rest of us goldbugs who are not into technicals it was just a lousy week for gold and for some it was a time to buy a little extra. I was reading that a lot of silver buyers were out in force picking up all the could. I did read that 1,405,000 silver eagle coins were sold just last week alone as reported by the US Mint, bringing Year to Date Sales to 31,980,500.
But back to the gold sell off and why it may not be as bad it as it appears. Sure there is talk about another $200 sell off before the end of the year but going by the charts below that were posted on Market Slant just today, Sunday, October 9, 2016, you can see that this same scenario has been played out in the past. This year was a bit more agressive of a sell off but then again maybe the rebound will be that much more aggressive too.
Surprisingly the miners and explorers were hardly effected at all. Yah sure there was a few cents off here and and few cents off there but for the drastic gold drop itself, it had little effect on any of the miners. In fact Gold Reserve GRZ was up 11% and Falco Resources FPC was up 4.5%.
News coming up this week may include the long awaited assays from Blue River BXR now that their PP has closed. Having the price of gold possibly doing a turnaround like the past two years could bring in a whole new wave of buyers on this 2016 golden week.
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