After the recent strength in gold last few weeks the technical indicators has turned more positive. For example, the MACD indicator in gold can turn to a buy signal any day now, see graph below:
This is very siginficant from a historical perspective. Last time the MACD went from a sell signal to a buy signal from such oversold levels was back in 1982, gold rallied from $290/oz to about $500/oz in just three months, +70%.
Today a move like that would take gold above $2000/oz in only three months and it would barely take the MACD indicator to a neutral position, still, most people cannot see this type of move coming. We are at the most oversold levels ever by far, ‘extreme’ moves in the opposite direction is to be expected if history is any guide, very interesting situation.