Gold: Is a Local Market Top Emerging, or Just Hot Sentiment?

Recent months have seen gold experience substantial price gains, but the market is showing signs of potential overvaluation. The monthly RSI (Relative Strength Index) has reached an unprecedented high – a signal indicating a possible overbought asset. This coincides with increasing demand for physical gold from consumers, a classic indicator of FOMO (fear of missing out), which often precedes market peaks. Analysts predict the current rally could reach $4,350 before dropping to $4,100. Perhaps the rally is temporary as we anticipate further price corrections after reaching a local peak.