Be warned, gold is very volatile

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The Market Ear on the gold rout. As I keep saying, for a safe haven, gold is very volatile.


Last time it corrected 30%

“What is remarkable about the recent “Gold rush” is not only the magnitude of the move, but also the speed. The only other time in recent history that a similar event occurred was in May 2006, when gold rallied 30% within two months and 60% within ten. May 2006 was followed by a 30% correction a month and a half later.”

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.