As if we needed more complications to our decision making, here is the sentiment graphic as of yesterday’s close.
The regular market’s sentiment was dinged by the expected early December rough up and the gold bugs are at ‘0’, which is certainly where prospective buyers want to see them.
Broad market sentiment is no longer significantly over bullish, so the market could be resetting for a Santa bump.
You will recall that the gold bug sentiment remained pinned to ‘0’ for a long time before the sector finally bottomed in late June for a hard rally.
Recall also that the CoT structures for gold and silver had been in bullish alignment for much of that time as well, but eventually had to come to near parity (between commercial short and speculative long positions) before the sector bottomed. As of last Friday, the gold CoT was just about there, but silver had a way to go.
This week’s CoT should be out at 3:30 (US Eastern) today. You can find the data linked on the right side bar of the site if interested.
This will probably be the last update today. I felt that there were some important things in play and wanted to illustrate them before the weekend report.