Gold pullback "nothing exceptional"

The current consolidation of gold prices is nothing to worry about, an industry analyst has advised investors.

According to Dave Galland of Casey Research, the price reductions seen in recent weeks are small in comparison with previous reductions, reports Resource Investor.

Mr Galland pointed out there have been three pullbacks since 2001, of 15.98 per cent, 18.27 per cent and 27.27 per cent respectively.

The recent dip in prices has only reached 18 per cent at its worst. This means that it would have had to fall to $730 per ounce to be deemed as bad as some of the previous price reductions.

Mr Galland pointed out that there have always been people who portray a bearish market for gold, but that investors could miss out if they sell too quickly.

"If you had listened to the naysayers when gold moved down from $725 to $567 in May 2006 and bailed out at the bottom of that correction, you would have missed a rebound of close to 100 per cent, he said, according to Resource Investor.

Gold prices reached a record high of $1,000 per ounce in March 2008.

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