There’s no other way to say it: Gold had a bad week. Last Tuesday alone, the yellow metal fell more than 3 percent, shuffling off $43, in its biggest one-day loss in three years. It broke below the psychologically important $1,300 mark and touched the 200-day moving average before rising again Friday.
In the past, gold has surged in September and corrected in October leading up to Diwali, the Festival of Lights, in India. Consumers there are expected to take ample advantage of the gold discount’s timing, as it follows a strong monsoon season and comes just before Diwali and the wedding season, when gifts of gold are considered auspicious. The correction has been followed by a Christmas and Chinese New Year-driven rally.