After my last article where I was showing that the positive sentiments on gold were at the lowest, here is a new comment on the technical reality.
As the sentiments are at the lowest, the contributors are playing their feelings on the metal and are taking positions in the way of their own anticipations, this seems totally logical !
It generates sometime exaggerations and induces Buy or Sell signals.
It sends us backward to past situations.
First of all the graphs:
Hedge Funds are now short !
The commitments of traders (COT)
explanations here : https://en.wikipedia.org/wiki/Commitments_of_Traders
And non-commercials going into negative zone too
And comparison with the GLD’s behaviour (SPDR Gold Shares) ETF sur l’or : https://en.wikipedia.org/wiki/SPDR_Gold_Shares
And especially the percentage bulls on mines
Conclusion – if History can teach anything to us – the last time when the net short on gold were like this was in 2001 and what happened to gold ?
For those who are positive on gold and mines and interested (do your own due diligence) in a stock (developer), I have a stock which can be a very good play for the next rebound
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