Understanding Gold’s probability

The #Gold Bugs won’t like this view.

“When Gold registers a monthly overbought signal and is trading at > 40% above its 50 month moving average, the price consolidates and is followed by a concerted effort at mean convergence”

It’s a little different initiating a new ‘long’ at todays prices compared to being ‘long’, long ago.

Reports suggesting a ‘melt-up’ have validity because of momentum, but one should forfeit the right to complain if gravity takes hold.

March 5, 2025