Gold Hits Most Overbought Level in 45 Years as ETF Demand Spikes

Gold's relentless rally has pushed its monthly Relative Strength Index (RSI) to nearly 90—a level not seen in 45 years. Historically, readings above 70 signal overbought conditions, making the current surge extraordinary. The metal has climbed 43% this year, fueled by falling real yields, geopolitical tensions, and aggressive central bank accumulation.

ETF inflows are accelerating the momentum. Holdings surged by 27 tonnes in a single day—the largest daily addition since January 2022—driving a 0.9% jump in total assets. Bloomberg data shows consistent growth in 2025, with nearly 400 tonnes added year-to-date. Silver is mirroring the trend, with $SLV's options volume hitting 1.2 million shares, the highest since April 2024.

Traders anticipate a correction given extreme overbought signals, but the metal shows no immediate signs of cooling. The rally has now notched six consecutive weekly gains, marking the longest streak since February.