Gold Investors Can Profit from This Key Contrarian Indicator

coins-desk-604x270

 

The price of gold has been trounced the past few weeks, and most of the bulls have left the building. The price of gold has slid $175 since election night, but this pales in comparison to the amount of bulls heading for the exits. According to the Daily Sentiment Index, bullish sentiment on gold has dropped from 49% bulls one month ago, to 6% as of Friday’s close.

What’s even more significant is that sentiment has only been this pessimistic one other time in the past 30 years. This occurred between September 8th 2014, and October 6th, 2014, and returns were strong following the signal. While this did not mark the absolute bottom for gold, it did provide a 10-day return of 6%, and a 3-month return of nearly 9%.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s