The needed gold stock correction..

Gold, it seemed, has a correlation with the US Dollars and crude oil. This, many people know. What's not so obvious is the subtle connection of gold with the month of September. Based on data going all the way back to 1969, gold rose on average to 2 percent on this particular month. However, this could not be taken as a gauge of how it will perform in future. True to that, gold has slipped from $1288 to $1240 thereabout. Ten days into this year’s month, however, the precious metal has lost 2.6 percent, slipping from $1,288 to $1,248 in a matter of 10 days. In the last 20 years, there were only 5 times in which gold ended lower than when it first started: 1996, 2000, 2006, 2011 and 2013.

This year remains to be seen whether it will go up or down. September however is statistically best for gold and worst for stocks. However looking at the trends, it looked like the coming moment will be a definitive signal of whether its braking out of a downtrend or continuing its current descent.

Gold, it seemed, needed a much long awaited correction. However, the sentiment now is improving and that might provide an impetus for gold to charge forward in the days ahead.