Gold Trades At Most Oversold Levels On Record

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 |  Includes: AGOL, DGL, DGLD, DGP, DGZ, DZZ, GLD, GLDI, GLL, IAU, PHYS, SGOL, UBG, UGL, UGLD
by: Bespoke Investment Group

The price of gold is currently trading more than 4.5 standard deviations below its 50-day moving average, which clocks in at the most oversold reading since at least 1975. The chart below shows the daily overbought/oversold reading for gold based on the number of standard deviations it traded above or below its 50-day moving average.

As shown, there have not been very many occurrences where the commodity traded more than 3.5 standard deviations below its 50-day moving average. In fact, there have only been ten.

Click to enlarge