IAUM - Gold Market Update

2024-04-24 13:55:00 ET

Summary

• Gold recently became extremely overbought in momentum terms against all major fiat currencies.
• In momentum terms, the euro, the Yen, the Swiss franc, the Australian dollar, and the Canadian dollar recently became as stretched to the downside relative to gold as they have been at any time over the past 15 years.
• With gold having just hit a rare overbought extreme against all major fiat currencies, the probability is high that the gold price has either just set a multi-month price top or will soon do so.

Editor's note: Originally published at tsi-blog.com on Apr 23, 2024

[This blog post is an excerpt from a recent commentary at Speculative Investor ]

Gold recently became extremely overbought in momentum terms against ALL major fiat currencies. For example, the following daily charts show that based on the daily RSI (14), a momentum indicator included at the bottom of each chart, gold recently became as stretched to the upside as it was at any time over the past 15 years, including at the 2011 major peak, relative to the euro, the Yen, the Swiss franc, the Australian dollar, and the Canadian dollar. Looking at it from a different angle, in momentum terms, the euro, the Yen, the Swiss franc, the Australian dollar, and the Canadian dollar recently became as stretched to the downside relative to gold as they have been at any time over the past 15 years....

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