by Jordan Roy-Byrne
The Daily Gold
Gold is correcting a short-term overbought condition.
Gold surged nearly $300/oz in less than six weeks and almost touched its all-time high. It was a logical point from which a correction could begin.
This is only the third time in Gold’s history in which it corrected after reaching or approaching the previous all-time high.
In the spring of 1978, Gold rallied to within $5/oz of the previous all-time high. It rebounded 34% in the preceding six months. Gold then corrected by 12% over less than two months.
In 2009, Gold reached the 2008 all-time high of $1000/oz. It had surged some 42% in only four months. Gold then corrected by 15% in roughly two months.