Gold is trading at 40-year extremes:
Gold prices have seen a truly historic rally this year and are up 29%.
As a result, gold is now ~15% above its 200-day moving average or 2 standard deviations, the widest gap since 2020.
Over the last 40 years, such a significant divergence has occurred only 8 times.
Following these extremes, gold returns were flat within 1-6 months and gained just ~5% within 12 months, on average.
History suggests that gold prices might be overextended in the short term.
Can gold keep pushing higher?
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