Convergence is also happening

Here is a story of convergence to the mean, not reversion.

The chart and graphics below show the Gold price (in USD) trading sideways for 2 years while the 200 week moving average has risen $300 or improved by more than 20%.

It has converged towards the oscillating price of Gold which has spent a couple years digesting and consolidating.

I’m preparing for a further 4% swoon from its current $1,706, down to around the $1,640 mark.

September 14, 2022

by Rob Zdravevski

rob@karriasset.com.au