Asset Watch
Thursday, September 28, 2023
Additionally, the black line at the bottom tracks gold’s weekly RSI when support materialised at the 50-week MA in 2019/2020 and February 2023, the metric remained above ~44. But when it dipped below ~44, it culminated with further weakness. Gold’s weekly RSI ended the Sep. 26 session near 46, which is another line in the sand that shouldn’t be ignored.
Finally, seasonality favours the bears, as October is tied for the second-worst monthly return (-0.20%), although it’s a 50/50 split between winning and losing months. Therefore, it may require another rate spike to push gold below its 50-week MA.
So, are you a buyer at these levels, or is more pain in store for the bullion bulls?