(Kitco News) – Gold continues to set fresh all-time highs and invoke comparisons to decades-old economic conditions and performance levels. Now, the yellow metal has hit another metric not seen in 45 years, according to analysis from Wajeeh Khan at Barchart.com.
In an article published on Wednesday, Khan said that after its recent rally, gold is overbought to a degree it hasn’t reached in nearly half a century.
“[T]he Relative Strength Index (RSI) for gold now sits at 89.72 on the monthly chart, its highest reading since at least 1980,” he wrote.
“RSI is a momentum indicator that measures the speed and magnitude of price movements,” he said. “Readings above 70 typically suggest an asset is overbought, meaning it may be due for a pullback.”
At just below 90, Khan said gold’s relative strength index reading is historically extreme. “Monthly charts reflect long-term trends, so this level implies sustained bullish momentum,” he noted. “On the flip side, however, it also warns of potential exhaustion. Traders often view such elevated RSI readings as a sign that prices could correct or consolidate.”
“Gold’s advance to new all-time highs this year has been relentless, but technical indicators like this suggest caution may be warranted in the short term,” he warned.
Khan pointed out that spot gold has rallied over 42% this year, driven by a variety of macroeconomic and geopolitical factors.
“With central banks cutting rates globally, including the Federal Reserve’s recent 25-basis-points reduction, real yields have declined, boosting gold’s appeal,” he said. “Persistent inflation concerns, rising fiscal deficits, and geopolitical tensions in the Middle East and Europe, have driven demand for safe-haven assets. Moreover, central banks have aggressively accumulated gold reserves in 2025, adding structural support to prices.”
Khan wrote that the weakening U.S. dollar and market expectations for further rate cuts “are keeping the bullish narrative alive, with some analysts now calling for gold prices to hit $5,000 by the end of 2025.”
After its third attempt to break above $3,760 failed shortly before 7 a.m. EDT, gold prices slid to a session low $3,722.22 in the minutes after the North American open.
Spot gold last traded at $3,730.71 per ounce for a loss of 0.15% on the daily chart.
