Gold Investing: Key Indicators Point to Major Top in Q4 2024
Gold Investing Set for Major Top in Q4 2024
Recent trends indicate that gold investing is on the verge of hitting a significant peak in Q4 2024. With recent price surges partly due to the Federal Reserve's interest rate decisions, key technical indicators are hinting at a potential correction in the near future.
Understanding the Technical Indicators
- The 14-month Relative Strength Index (RSI) has recently crossed above 80.
- This is a rare event, having occurred only three times in the last two decades.
- Gold historically declines by about 22% to 34% after reaching such levels.
In past instances from 2006, 2008, and 2020, significant declines followed similar RSI peaks.
Price Predictions and Market Sentiment
- Analysts forecast gold could hit at least $2,815 by the end of Q4.
- A potential correction is anticipated based on historical trends.
Mike McGlone from Bloomberg Intelligence reiterates the likelihood of a $2,400 interim drop, while also predicting a long-term high of $3,000.
Future Outlook for Gold Investing
Despite bullish indicators, caution is advised. Current fundamentals, including potential geopolitical tensions and monetary easing from the Federal Reserve, support further upside. Yet, market players express concerns about a possible economic downturn impacting gold investments.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.