economy
Gold may be ready to cool off again, history shows
Bespoke's analysis shows gold's rally may be ready to cool down, based on historical data.
TL;DR
- Gold's August rally has seen futures increase by around 8%, reaching their highest point since June.
- The yellow metal entered overbought territory for the first time since March 10.
- Historically, gold has shown negative returns after such extended periods without an overbought reading.
- Bespoke's data suggests average declines of 0.22% in the following week, 0.34% in the next month, and 0.53% over three months.
- The largest average decline of 0.62% was observed after 12 months, with only 37% of historical episodes showing positive returns a year later.