Chart of the Day - Tuesday, March 5, 2024

🏆 Today’s Chart of the Day was shared by Chris Verrone (@verrone_chris).

• Gold is trading at a record high of $2,142/oz, after surging nearly +5% in the past four days. It’s received far less attention than Bitcoin despite the Gold market being several times larger than the entire Crypto market.

• RSI printed its most “overbought” reading in two years today. However, Chris maintains a price target of $2,400-$2,600/oz., noting “very overbought” is usually a signature of a solid/developing trend, as seen in 2019/2020.

• Many have given up on the yellow metal after fumbling four breakout attempts in the past four years and notably underperforming other risk assets. But, the lack of enthusiasm for Gold could work in it's favor this time. 

The takeaway: Gold is very “overbought” after thrusting to record highs recently. As legendary technician Alan Shaw once said – “The most bullish thing a market can do is get overbought and stay that way.”