Reversion to the what??
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In my September 5, 2025 blog note I wrote that the prices of gold and silver were getting ahead of the 50-day and 200-day moving averages and that either the moving averages had to catch up or price had to decline to the moving averages. Or revert to the mean! We are seeing some of that this week with gold down 3.30% for the week and silver down 4.38% for the week. The moving averages continue to be upsloping.
The Dow Jones Industrial Average (DJIA) was up 2.46% for the week. The Dow Jones Transportation Average (DJT) continued its downward move declining 1.41% for the week with the 50-day and 200-day moving averages sloping downward. Dow Theory says that the DJIA and DJT have to move together to confirm the DJIA price movement. Something to watch.
In my September 27, 2025 blog note I wrote that October usually sees a decline in the gold price and then an increase from November into January. Something else to watch.
On Friday, the Consumer Price Index for September came in below expectations with the core coming in at +2.0% for the month and 3% for the year. Above the FED’s 2% target though respectable. This helped buoy the stock indices.
Until next time…
