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It's been a rough week for gold bulls everywhere. As of 8:50 a.m., gold prices today (Friday, Jan. 27) are down 0.6% to $1,186, marking their fourth straight day of losses.
Just as the price of gold was bragging about a robust rally, there were forces working in the background to counterbalance its recent strong advance.
The main force was, of course, the Dow Jones Industrial Average hitting 20,000.
That's basically all it took to drag the gold price lower. The precious metal's unrelenting strength, which lasted an entire month, was due for a breather.
In my view, that's exactly what we're getting now. And on a technical basis, I don't think it has much lower to go.
I'll explain to you how I came to that conclusion, but first a quick look at this past week's gold price action…
Why Gold Prices Today Are Down for a Fourth Straight Session
The price of gold ended the previous trading week on Friday, Jan. 20, with a strong reversal. It opened at $1,200 and gained handsomely over the rest of the day to close 0.8% higher at $1,210.
On Monday, Jan. 24, gold prices opened at $1,214 and traded mostly higher throughout the day. They settled 0.3% higher at $1,218 an ounce.
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Tuesday started what was to be a challenging week on balance. As the Dow Jones Industrial Average inched ever closer to the 20,000 level, investors were lured toward stocks and away from precious metals like gold. This dragged the gold price down 0.4% to close at $1,208.
Even the weakening dollar from Monday through Wednesday couldn't lift gold prices against the rising Dow Jones…
Despite the U.S. Dollar Index (DXY) weakening through Wednesday, gold prices remained challenged by stocks. The Dow Jones jumped above the psychologically significant level of 20,000 just after the Wednesday open. By 10:00 a.m., the gold price had dipped below $1,200 to $1,195, but regained it by the close. It settled at $1,200 and logged a 0.7% loss on the day.
On Thursday, Jan. 26, the Dow Jones brought continuing headwinds to gold prices. As the Dow powered higher to spend much of the day above 20,100, gold fell 1% to close at $1,188.
And gold prices today are continuing the losing streak. They're down 0.6% to $1,186 and are on track for a weekly loss of 2%.
Despite the stock market's hot streak, the price of gold is poised for a bull run this year. Here's my latest price target…
Gold Prices Today Fall, but This Indicator Points to Huge Gains in 2017
About the Author
Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it's in gold, silver, oil, coal, or even potash.