Gold Prices Fall on Profit-Taking

There's no doubt we're in a short period of a correction of gold, which is always going to be inevitable as the gold bull market continues.

All this means is those selling the gold aren't investors but traders, and they're foolishly selling their positions to draw out a little of the profit coming from the quick rise in gold prices over the last week or two.

Gold is now well off its recent record all-time high of $1,249.50, down and hovering around $1,191 an ounce off and on during the trading session.

This is a good thing in my view, as it gets rid of the players, while leaving the gold investors in the market. It's also a great opportunity to buy some more gold with the decline, although some think it could drop by another $20 an ounce before it begins its upward climb again.

We don't worry about trying to exactly time the bottom though, as it's a good way to lose a lot of money when the price of gold starts to rise, which will cost you more if it's too late. It's better to just invest when it's dropped a good amount like now, than attempt to squeeze out every penny you can from the downward move.

Either way though, this correction was expected, and you should expect more as players enter the market and bid up the price over a relatively short period of time. They will eventually exit the market, and we go back to the underlying fundamentals, which will continue to drive the price of gold up for a long time to come.