With the recent weakness in gold, today King World News is pleased to share an important update on the gold market that will help KWN readers around the world understand why there is such a fierce war taking place in the paper gold market. This piece also includes three key illustrations that all KWN readers around the world must see.
October 29 (King World News) – Jason Goepfert at SentimenTrader: “The latest Commitments of Traders report showed an eagerness to sell the metals, especially gold and silver. Both are at levels that coincided with peaks in the metals over the past three years (see gold chart below).
King World News note: This was SentimenTrader’s recent comment about the silver market: “If it can continue to rally in the face of heavy pressure from hedgers, it will be an excellent sign that the bear market is likely over.” If we apply the same logic to the gold market, we would need to see the bulls in the gold market make a stand and send the price to new recent highs, and so far that has not been the case as gold has continued to weaken.
King World News note: If you look at the chart below, it gives you a longer-term look at the commercial hedgers’ short and long positions going back to the early 1990s.
King World News note: If you look at the chart below, it shows the most recent sentiment readings in the gold market. Jason noted that rallies in the metals markets have typically been failing as sentiment readings approach the 50 level (see gold sentiment chart below).
King World News note: The bottom line is the war in the gold market continues to rage and this has been frustrating for the bulls, who have waited for over 4 years to see strong indications of a resumption in the secular bull market in gold and an end to the cyclical bearish phase.
This is also the reason that such a fierce battle recently took place in the gold market at the 200-day moving average, which is near the $1,180 area. It will be interesting to see how gold trades in coming weeks to see if there are any signs that the tone of the market may finally be changing.
These charts are just a portion of one of the latest fantastic reports. To try a free 14-day trial of the internationally acclaimed work that Jason Goepfert produces at SentimenTrader simply CLICK HERE.
***ALSO JUST RELEASED: 1929 Stock Market Crash, FOMC, Gold, Oil And Overseas Markets CLICK HERE.
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