Gold Rally Nears Overheated Levels as Price Stretches 18% Above 100-Day Average

Gold’s impressive bull run may be nearing an overextended phase, according to Bloomberg Intelligence’s Mike McGlone, who noted the metal is now 18% above its 100-day moving average, a level of deviation last seen when gold first hit $2,000 per ounce in 2020 and $3,000 earlier this year.

McGlone highlighted that $2,000 acted as a ceiling for nearly four years, while the $3,000 mark held for just over four months before prices surged again, suggesting that momentum has accelerated beyond typical cycles. The data signals that gold may be entering a zone of heightened volatility and potential exhaustion, similar to prior peaks.

Implications for Broader Markets

The Bloomberg chart compares gold’s surge with the S&P 500’s 60-day volatility, revealing a sharp divergence between gold’s momentum and stock market complacency. Historically, such divergence often precedes market corrections or shifts in macro sentiment.

Read More:

Thailand Eyes Expansion of Crypto ETFs Beyond Bitcoin

McGlone’s analysis implies that while gold’s bullish structure remains intact, its short-term trajectory could face resistance, especially if equities remain stable and real yields rise. Still, long-term macro drivers, from central bank accumulation to persistent inflation risk, continue to support the metal’s broader uptrend.