As signs of an economic slowdown meant a reduction in inflationary fears, the price of gold has fallen sharply in the past few days. Gold's decline mirrored the drop in the price of oil under $60 a barrel. Clearly, the two commodities are moving in tandem. The lazy man's explanation can be found in transit Saturn's near exact conjunction to the Descendant.
No surprises here really. I had predicted back in the summer that gold would retest its June lows in the $550-560 range and that is what's happened. The Saturn aspect is a problem, and with Uranus still backing off Jupiter, there is little upward price pressure from the planets.
I expect the price to bounce around $600 (mostly under) for another month or two. I wouldn't be shocked to see it fall below $550 either. I think a major turning point should be when Uranus turns direct on November 20. Even then, the price may not make any dramatic upswing. December will probably see it above $600. The bigger increases will likely occur after January 1. Again, I think it's very possible for gold to eclipse the May highs of $725 by April 2007.
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