While the gold price looks fantastic here, the RSI is now at 85 which is historically at a very extreme level. There should be a considerable correction coming soon which will prove to be a great opportunity to open up new long positions once completed. By no means am I long term bearish on gold but it is now way too extended with sentiment also in extremes. The likely culprit in the ensuing correction would be a meaningful rebound in the USDX coupled with another selloff in global stock markets...
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RSI is now second to that of the January 1980 spike high and third of the February 2008 high. Each respective correction thereafter was 50% and 35%. Now with the news outlets ALL talking about gold prices and analysts saying "more room to run", surely we are getting close to topping out soon...
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That got ugly real quick...
Trade closed: target reached
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Gold holding strong above $1900. Correction from $2075 appears to be completing here now..