Gold Price Stretched

In Gold: Curb Your Enthusiasm, I wrote that the gold price was reaching extremes, hitting the upper extreme of the Hurst Bands.

Well, just because something is extreme doesn't mean it can't become more extreme, and this is what has happened this morning with gold reaching as high as $1,244.60 on the Comex this morning.

One thing about extremes though, the tend to balanced out on the downside. So, for example, if the gold price moves significantly above the extreme Hurst Bands to the upside, it will likely fall below the extreme Hurst Bands on the downside.

Things have a way of balancing out in the end.

Bottom Line: Gold may have a little bit of gas left in the tank to the upside, but whatever it adds above the extreme Hurst Bands on the upside will likely be taken away on the downside.