Gold's move over the past couple of months has been pretty incredible but not without precedent.  As shown in the first chart below, the most recent leg up for gold has put it at 19% above its 200-day moving average.  In the second chart, we highlight the historical 200-day moving average spread for gold.  As recently as 2006 and 2008, the 200-day spread moved well above 25%, and back in 1980, the spread briefly got up to 136%!  Gold is definitely overbought right now, enough so that the risk/reward tradeoff in the short-term is probably favoring the risk side.  However, it has gotten much more overbought in the past than it is now, so it could still go higher before correcting.

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