Gold: It was fun while it lasted
That's because gold market timers have become too enthusiastic in the past few days. That is a bearish short-term omen from a contrarian point of view.
To be sure, the gold timers can be excused for becoming enthusiastic. They have been waiting for nearly nine years for gold to surpass its September 2011 all-time high above $1,900, and it finally is mounting a significant effort to do so.
Regardless, though, there's no denying that sentiment conditions are not favorable for an immediate run toward those highs. Only when the gold timers become a lot less enthusiastic will contrarians start looking for such a rally.
Consider the average recommended gold market exposure level among several dozen short-term gold timers I monitor (as measured by the Hulbert Gold Newsletter Sentiment Index, or HGNSI). This average currently stands at 52%, which is higher than 79% of all daily readings since 2000.
https://www.msn.com/en-us/money/mutualfunds/gold-it-was-fun-while-it-lasted/ar-BB12IAwl?li=BBnbfcN
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