Gold Just Hit Its Most Overbought Level in 45 Years According to This Chart

Gold (GCV25) remains in the spotlight this morning after flashing a rare technical signal: extreme overbought conditions not seen in nearly half a century.

According to a recent X post from Barchart, the Relative Strength Index (RSI) for gold now sits at 89.72 on the monthly chart, its highest reading since at least 1980.

Invest in Gold

American Hartford Gold: #1 Precious Metals Dealer in the Nation Learn More

Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase Learn More

Thor Metals Group: Best Overall Gold IRA Learn More

Powered by Money.com - Yahoo may earn commission from the links above.

More News from Barchart

Dollar Slips and Gold Soars as T-note Yields Fall Dollar Weaker and Gold Posts a Record High on Dovish Fed Gold Prices Just Hit Another All-Time High. Here Are the 2 Top-Rated Gold Stocks to Buy Now. Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else.

The yellow metal has rallied sharply in recent months, driven by macroeconomic uncertainty, central bank buying, and investor demand for safe-haven assets.www.barchart.com

Why Gold Prices Could Pull Back in the Near Term

RSI is a momentum indicator that measures the speed and magnitude of price movements. Readings above 70 typically suggest an asset is overbought, meaning it may be due for a pullback.

Gold’s relative strength index at a tad below 90, as highlighted by Barchart, is historically extreme. Monthly charts reflect long-term trends, so this level implies sustained bullish momentum.

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.

Why Has Gold Rallied Hard in 2025?

Gold has rallied roughly 43% this year (based on the cash contract) due to a confluence 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.

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.

A weakening U.S. dollar and expectations of further monetary easing are keeping the bullish narrative alive, with some analysts now calling for gold prices to hit $5,000 by the end of 2025.

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

View Comments