That is what I called the big pile-in to gold in 2011 as the refugees of the Euro crisis gave gold its final push to a top. They knee jerked in and gold was cooked (with some help from big brained Doctor Bernanke and his Treasury bond Frankenstein known as Operation Twist).
Today, the capitalized opening sentence should be more like k.n.e.e.j.e.r.k.s
A short-term warning is in play according to Mark Hulbert’s sentiment tool, the HGNSI, which is a sentiment index based on gold newsletter writers. They whipsawed to a very bullish stance with the big spike up in gold prices last week.
What could pressure gold now? Aside from sentiment, if a short-term market recovery plays out as expected, whatever risk ‘off’ components were in the spiking gold price could be vulnerable.
Just an fyi my gold bug friends. When the gold newsletter writers get frisky and on the tout it is often a precursor to a tamping down of the gold community’s enthusiasm. It’s probably a short-term thing only, but I thought it worth noting.
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