On Dec. 16, gold traders were more bearish on a longer-term basis than they were in July 1999, when the precious metal was at $252.15. That day, our Short Term Update said, "It's tough to lean against the crowd ... but that's exactly what our analysis suggests is proper at the current juncture." On Jan. 17, gold hit a 2-month high.
No trader wants to be "left behind" when a financial market takes off. But many traders jump aboard a trend just when it's on the cusp of a reversal. Silver is a case in point, for bull and bears.
Check out this sentiment index average: It's a contrary indicator, which reflects an all-time record in the 29-year history of the index.
2016 has been a year of shocks. And for many gold bugs, that includes the unrelenting downtrend that gold prices have endured since June. According to the experts, gold was supposed to be soaring, not sputtering. So, what happened?
Bearish hedge fund managers were woefully caught off guard in December 2015 when gold launched a 31% rally into July of this year. By contrast, we told subscribers that a sharp rally was imminent right at the low. Now, gold's price appears to face another key juncture.
Bullish sentiment among silver traders recently fell to 8 percent, the lowest reading since mid-2015. So, sentiment is in the right place for the next big leg in the price pattern.
If you live in the U.S., maybe you've noticed lately that "We Buy Gold!" signs are disappearing from sidewalks in front of pawn shops. The signs really began popping up in 2010-2011, when gold prices were climbing to their all-time high of $1900 an ounce. And even after gold tumbled...