Gold is Deeply Oversold: deepest in 2 years

in #money6 years ago

Dear Steemit friends,

There is a lot of fear currently in the gold trade, it is easy to find a lot of scared-sounding comments about gold price. However, if you can overcome your emotions, rationally it is a good idea to invest into an asset when everyone is scared to buy it after a deep decline.

Gold has been on the decline since early April. An asset like gold cannot keep going down forever, so a turn to an upward trend should come sometime. This time might be approaching very soon, as gold is deeply into oversold area on the 14-day RSI.

Over the last few year, the last time gold was so deeply oversold was soon after Trump's election. After that bottom, gold price rallied from $1125 to $1260 in about 3 months. After a brief rest, gold continued to rally until $1280. Even in the first 3 months after that bottom, price increased by about 10%.

So, based on the resent history and RSI, we might see gold rally by about 10% soon. Such a rally, if starting now, would bring gold price to about $1360 in a few months. What is you opinion on the gold price? Do you think we will see gold above $1350 by October?

Gold oversold.PNG

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It has been painful, let's see it above 1350 after summer.

Looks like some nice divergence.

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