Daily MACD says gold is 'overbought'

Gold was up close to 2% yesterday as it registered a new all-time closing high just below $2,920. It built on those gains overnight, briefly breaking above $2,940 in early Asian Pacific trade. But it subsequently dropped sharply, losing $35 (around 1%) in fifteen minutes. It managed to steady somewhat, but then fell back towards $2,900 once again. The daily MACD remains in ‘very’ overbought territory. But it got there in such a steady and measured way that it doesn’t necessarily put the bulls on high alert. After all, markets can remain overbought, and oversold, for surprisingly long periods. Nevertheless, the bulls should be careful up here even though analysts are saying that the uncertainty of President Trump’s tariff threats make a compelling case for owning gold. That may be, but price is important, as well as sentiment. Silver was down sharply in early trade on Tuesday. While not overbought, it seems happy to consolidate around $32 per ounce.