When looking at the price from a mathematical standpoint, gold is due for mean reversion, as it is currently down two standard deviations.
Everything is hot! It’s hot in Texas, we have hot interest rates rising and hot geopolitics, but gold is cool. I explain how gold stocks compared to the S&P 500 on a ratio basis are at a huge discount. When looking at the price from a mathematical standpoint, gold is due for mean reversion, as it is currently down two standard deviations. Historically, in the following three months after being down two standard deviations, gold has rallied 77 percent of the time.
Video Length: 00:03:06
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Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is also known as historical volatility.
The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.
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