Från thedailygold.com: Gold Most Oversold since 1985
According to at least one technical indicator, Gold is now most oversold since 1985. The indicator I am tracking here is the simple yearly rolling performance, also known as 52 week rate of change. Essentially we are looking at the performance of an asset over the last 12 months – and Gold is having one of the worst ones ever.
Gold Miners have faired even worse, being the leveraged play on Gold via both the upside and downside. The chart above shows that the sector is incredibly oversold right now, as the price has lost over 57% in the last 52 weeks. Similar instances with such a dramatic decline were seen in 1998, 2000 and 2008. All of them eventually resulted in major bull markets.