Today's Chart of the Day was shared by Alfonso De Pablos (@AlfCharts).
- Gold futures just had their worst session since 2020, dropping -5.4%. The Gold ETF ($GLD) fell even harder, sliding -6.4%, marking its worst day since 2013.
- After its best day since 2021 yesterday, Gold was poised for its first 10-week winning streak since 1980. But with today’s reversal, it’s now down -3% with three sessions to go.
- Alfonso shows that Gold was +32% stretched above its 200-day moving average at yesterday's close. Price rarely extends more than +25% above its 200-DMA, but previous signals led to several months of consolidation or correction.
The Takeaway: The parabolic rally in Gold finally snapped today. While the uptrend remains intact, price has become extremely detached from its long-term average, and mean reversion is likely.
