Gold Trades at Most Oversold Levels on Record

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.