Gold- Surging Despite Being Overbought - Neutral

15 août 2019

Gold has gone up approximately 7% since the beginning of the month however we are holding onto our long position despite the RSI being above 80 indicating it's overbought. This is because the current stock market turmoil and the 2s10s yield curve inverting indicating a recession is imminent could see investors flee further towards safe haven assets such as Gold. Therefore we will hold our long position but would expect a pullback towards $1500 if stocks bounce from current levels and/or US/China relations improve and negotiations are showing signs of progress.