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%.