Chart of the Day - Friday, October 13, 2023

Today’s Chart of the Day was shared by Dean Christians (@DeanChristians). Gold futures had their best day since December 2022 today, surging +3.11%. It closed the week up +5.22% overall, marking an impressive turnaround. It's rebounding off a seven-month low, after snapping a nine-day losing streak last Friday. Dean points out that momentum was extremely oversold heading into this move, with RSI printing a multi-year low last week, below 20. According to the data table, Gold tends to have strong returns after RSI falls below 20. Record highs by the end of the year looked unlikely after fumbling its third breakout attempt in May. However, all-time highs look much more achievable after this week's reversal, as the yellow metal just -6% below its peak.