Gold has just reached its highest level in 45 years, according to this graph

Gold (GCV25) remains in the spotlight this morning after flashing a rare technical signal: severe conditions that have not been seen in about half a century.

According to X Post recently from BARCART, the RSI is now at 89.72 on the monthly chart, which is the highest reading since 1980.

The yellow metal has increased sharply in recent months, driven by total economic certainty, the purchase of the central bank, and the investors demanding safe assets.

RSI is a momentum indicator that measures the speed and size of price movements. The above readings usually suggest that the original has been clarified, which means that it may be due to the decline.

The Relative Power Index in TAD is less than 90, as Barchart explained, historically. Monthly charts reflect long -term trends, so this level involves continuous bullish momentum.

On the other hand, it is also warned against potential exhaustion. Traders often see high RSI readings as a sign that prices can be corrected or unified.

Gold has been progressing to the highest level of this year unabated, but technical indicators like this indicate that caution may be justified in the short term.

Gold rose about 43 % this year (based on the monetary contract) due to the convergence of total economic and geopolitical factors.

With the reduction of central banks around the world, including the reduction of the Federal Reserves of 25 points, the real revenues decreased, which increased the resumption of gold.

Continuous inflation concerns, high financial deficit, and geopolitical tensions in the Middle East and Europe have pushed the demand for safe assets.

Moreover, central banks collected gold reserves in 2025, adding structural support to prices.

The weakening of the US dollar and the expectations of more cash dilution remains alive, as some analysts now call for gold prices of $ 5,000 by the end of 2025.

On the date of publication, Wajeeh Khan did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com