From Investment Postcards from Cape Town:

The gold price has been working its way higher since hitting bottom in late-December and managed to breach its rising 200-day moving average yesterday...

In September of last year, we saw gold jump two standard deviations above our gold intermediate-term risk indicator's average, a feat only seen on three prior occasions (2006, 2008, 2009). Since then, gold has significantly worked off its overbought condition and fallen by over 20% to its recent low on December 29.

Now, the recent decline has been sufficient enough in both time and magnitude to drop our gold indicator to a very oversold reading of more than one standard deviation below its historical average. The last time gold was this oversold was back in 2008 and represents...

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